Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 12

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 12
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, date July 19, 2024, by the Borrower for the benefit of Amerisource (the “Note”). The transaction closed on July 19, 2024 at which the Company drew down approximately $5.52 million of the Revolving Credit Facility, net a $788,000 interest reserve required to be withheld to ensure interest payments by the Company. The Company used $4.73 million of the drawn down amount to refinance the Company’s mortgage on the Company’s real property located at 2500 North America Dr. in West Seneca, New York, and approximately $330,000 in accounts receivables, with approximately $937,000 currently remaining available for Accounts Receivable financing under the Agreement. The Company and Terravis Energy, Inc., a subsidiary of the Company, has provided a guaranty in favor of Amerisource, guaranteeing all obligations of the Borrower under the Agreement. In connection with the Agreement, on July 19, 2024, Worksport New York Operations Corporation and Worksport USA Operations Corporation, issued Amerisource a Commercial Promissory Note (the “Note”) for a principal amount of up to Six Million Dollars ($6,000,000.00). The Note bears interest at the lesser of (i) the prime rate plus 3.00% per annum and (ii) the maximum rate allowed by law, subject to a floor of 6.00% per annum. Monthly interest payments are due on the first day of each month following the first full calendar month from the Note’s date, continuing until twenty-four months from the date of the Note, at which time all unpaid principal and accrued interest are due and payable.

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May 2024 Inducement Letter for the Exercise of Existing Warrants in Exchange for the Issuance of Inducement Warrants

On May 29, 2024, we offered to reduce the exercise
price of warrants to purchase 700,000 shares of Common Stock (the “Existing Warrants”) held by the Selling Stockholder
that initially had an exercise price of $1.34 per share, issued on November 2, 2023, to $0.5198 per share as an inducement to the
exercise of the Existing Warrants, provided the Selling Stockholder agreed to exercise for cash the Existing Warrants in consideration
for our agreement to issue a new warrant (the “Inducement Warrant”) to purchase 1,295,000