Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1122

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1122
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 under such a registration statement
will be available for sale in the open market upon the effectiveness of the registration statement.

In the future, we may also issue our securities to raise capital or
in connection with investments or acquisitions. We may also issue additional securities upon adjustments included in our existing securities.
For example, on June 18, 2024, we closed a private placement transaction of notes and warrants for $3 million of gross proceeds, on November
7, 2024, we closed a private placement transaction of shares and warrants for $9.15 million of gross proceeds, on December 24, 2024, we
consummated the First Closing of that December 2024 offering in which we issued shares and warrants for $5,484,843 of gross proceeds,
and on and January 31, 2025, we consummated the Second Closing of the December 2024 Offering in which we issued shares and warrants for
$1.44 million.

The amount of shares of Common
Stock issued or issuable upon exercise or conversion of securities issued in connection with a capital raise or an investment or acquisition
could constitute a material portion of the then-outstanding shares of the Common Stock. Any issuance of additional securities in connection
with capital raising activities, investments or acquisitions may result in additional dilution to our stockholders.

Our entering into settlements with ACM could
result in a breach of standstill provisions in agreements we entered into in connection with the November 7 Placement.

We are currently in the process
of negotiating settlements of claims against us by ACM, the terms of which could breach certain restrictive covenants in the Securities
Purchase Agreements we entered into with investors, and the Placement Agent Agreement we entered into with the Placement Agent, each in
connection with the November 7 Private Placement. These restrictive covenants prohibit us, subject to certain exceptions, from issuing
additional shares of Common Stock or securities convertible into or exercisable for shares of Common Stock (“Common Stock Equivalents”),
and from filing any registration statements to register for resale any of such securities, without the consent of the investors, who were
issued 50.1% of the securities issued in the November 7 Private Placement, and the Placement Agent. Since we expect to issue shares of
Common Stock and Common Stock Equivalents to ACM, in connection with a settlement to be entered into with ACM, and to register such shares
of Common Stock and shares of Common Stock underlying Common Stock Equivalents for resale