Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 56

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 56
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inarily believed to be” at least $10,000,000 purportedly arising from the alleged breaches.
The Claim also seeks amounts for attorneys’ fees and costs, as well as an order of rescission with respect to the issuance of certain
allegedly wrongfully dilutive shares of Common Stock issued in connection with the Business Combination or, alternatively, an order mandating
a purportedly anti-dilutive issuance of additional shares of Common Stock to the claimants. On January 31, 2024, the claimants filed an
action in the New York State Supreme Court in aid of the arbitration, including seeking by order to show cause substantially the same
relief as the Claim on a declaratory basis. The Court denied the application for a mandatory injunction granting ultimate relief on the
record. Claimants filed a separate order to show cause seeking attachment of the Company’s assets arguing the Company did not have
sufficient working capital to satisfy a potential award based on its public filings. The Court found that while Claimants had not shown
a likelihood of success in their theory of the case, it was likely something would be owed. An order granting claimants the right to attach
up to $3,399,878 of Zoomcar’s assets in New York along with other relief, was issued and later modified by the New York Appellate
Division, First Department. A motion seeking to stay or modify that order is currently pending in the First Department and the parties
are awaiting the start of arbitration. While the Company believes that the claims are not supported by the facts or law and there was
no breach of agreements as alleged, there can be no assurance that the Company will be successful in their efforts to have the matter
vacated, and such efforts may be time-consuming, costly and may have reputational and other negative effects on the Company. On June 18,
2024, in connection with the Company’s agreement to engage Aegis as placement agent as mentioned under ‘Liquidity and Capital
Resources’ section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. The parties thereafter
agreed to defer all further action with respect to the arbitration and associated litigation until June 18, 2025.

The founder and former CEO of the Company has initiated a civil complaint against the Company contesting the reasons for his termination and has raised certain other claims with regards to his ownership of the Company and compensation for termination of his employment.

On September 26, 2024, we
received