Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 98

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 98
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 Securities in such offerings have been registered for resale. While there is an effective registration statement for the resale of the shares and shares underlying the November Series B Warrants issued to the investors in the November Offering, there is not an effective registration statement for the resale of any of the other Registrable Securities issued in the November Offering, the December Offering, the January/February Offering and the March Offering. Accordingly, the filing of this registration statement constitutes a breach of contract under the registration rights agreements for each of the November Offering, the December Offering, the January/February Offering and the March Offering. 51 In addition to a claim for breach of contract associated with the filing of this Registration Statement, the investors in the November Offering, the December Offering, the January/February Offering and the March Offering may also have a claim for breach of contract related to our failure to timely file a resale registration statement for their Registrable Securities and to timely have such resale registration statement declared effective. Further, in addition to any remedies that the investors in the November Offering, the December Offering, the January/February Offering and the March Offering may have related to such a breach of contract claim, such investors are also entitled to liquidated damages in connection with such failures. Such liquidated damages are due and payable at a rate of 2 % per monthof the subscription amount for each investor (total subscription amount $8.48 millions) and are payable on an “Event Date” as defined in the registration rights agreements (which Event Date includes the date on which the company fails to timely file the registration statement and have such registration statement declared effective) and accrue and are thereafter payable on each monthly anniversary of such Event Date until such event has been cured. Accordingly, we believe that liquidated damages may have begun accruing as early as January 13, 2025. If we fail to make any payments for liquidated damages for seven days after the date payable, we are required to pay interest to the investor at a rate of 15% per annum accruing daily until the liquidated damages, plus all accrued interest, has been paid. In connection with our obligation to register the Registrable Securities held by investors in the November Offering, the December Offering, the January/February Offering and the March Offering, we filed a resale registration statement on March 4, 2025, to register for resale a total of 6,682,720 shares of Common Stock (or 133,654,397 shares of Common Stock prior to giving effect to the Second Reverse Split)