Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 115

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 115
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 notes in a transaction involving Aegis Capital Corp. (“Aegis”) acting as the placement agent prior to
which, the consent of ACM was not obtained. As per the terms of the ACM note, in the event of any default, all accrued but unpaid interest
plus liquidated damages and other amounts thereof, shall become immediately due and payable in cash. On November 7, 2024, ACM filed a
notice of motion for summary judgement in in lieu of complaint against Zoomcar in New York courts for accelerated payment of $5,997,832.72
due under the ACM note and related legal expenses, pursuant to breach of the terms of the note. ACM alleged that, two “Events of
Default” (as defined in the Note) had occurred thereby entitling ACM to full and accelerated payment of the Note.  The first
was a Form 8-K, filed by Zoomcar on May 9, 2024, which allegedly disclosed that on May 6, 2024, Zoomcar had entered into an equity line
arrangement and “Variable Rate Transaction” (as defined in the Note) with White Lion Capital LLC (“White Lion”). 
The second was a Form 8-K, filed by Zoomcar on June 21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar had incurred a
form of debt that was not “Excluded Debt” (as defined in the Note) arising from its placement agent agreement with Aegis
Capital Corp. without ACM’s prior consent.  The Note generally provides that, upon the occurrence of an Event of Default,
all accrued but unpaid interest plus liquidated damages and other amounts thereof shall become immediately due and payable to the Note
holder. On January 14, 2025, Zoomcar filed opposition to the Motion.  In relevant part, Zoomcar challenged the fact allegations
concerning: (i) the first Form 8-K by tendering to the Court evidence confirming that the subject transaction with White Lion in fact
had been terminated and the underlying filing of a Form S-1 registration statement contemplated in that transaction was never effectuated;
and (ii) the second Form 8-K by tendering to the Court evidence confirming that the subject transaction involved Excluded Debt. 
The effect of the foregoing is the transactions were excluded from the definitions of Events of Default and extinguished ACM’s
alleged entitlement to accelerated payment under the Note.  Additional defenses were also