Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 14

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 14
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 payable to Maxim Group LLC. We intend to use the net proceeds from the offering for general corporate purposes, including working capital.

In a concurrent private placement, we issued the 2024 Purchaser warrants to purchase an aggregate of 770,027 shares of common stock for $7.40 per share. Under the warrants, we are obligated to register the shares underlying the warrants on a registration statement on Form S-3 (or other applicable form). If at the time, there is no effective registration statement available for the shares of common stock underlying the warrants, the warrants may be exercised via a “cashless exercise.” We will not receive any proceeds from any warrants exercised by a “cashless exercise.”

Recent Developments

Reverse Stock Split

On February 25, 2025, the Company’s Board of Directors approved a 1-for-10 reverse stock split of its common stock (the “Reverse Split”) and a simultaneous proportional decrease in the number of authorized shares of Common Stock (the “Decrease in Authorized Shares”). The Reverse Split and the Decrease in Authorized Shares became effective at 12:01 a.m. Eastern Time on March 18, 2025, with post-split trading commencing that day. The Company’s trading symbol, “WKSP” remain unchanged, and the common stock trades under a new CUSIP number, 98139Q308. The Reverse Split is intended to regain compliance with Nasdaq’s $1.00 minimum bid price requirement. At the effective time, each ten (10) shares of common stock automatically converted into one (1) share, with no fractional shares issued, fractions rounded up.

Nasdaq Notice of Failure to Comply with Continued Listing Standards

On April 19, 2024, we received written notice from
Nasdaq informing us that we had failed to maintain a minimum bid price of at least $1.00 per share for the prior 30 consecutive trading
day period from March 7, 2024 to April 18, 2024, based upon the closing bid price for its common stock as required by Nasdaq Listing Rule
5550(a)(2).

To regain compliance, the closing bid price of our
common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive trading days, unless extended by Nasdaq under Nasdaq
Rule 5810(c)(3)(H), prior to October 16, 2024.

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If we do not regain compliance with the Bid