Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1063

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1063
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on the price of our Common Stock.

We will finance our immediate
cash needs (and expect to finance our future cash needs until we become profitable, if ever) through equity offerings, debt financings
or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances, and licensing arrangements.
We will require substantial funding to fund our business. Investors in the Zoomcar 2023 Private Financing (“Financing Investors”)
received most favored nation exchange right provisions (the “MFN Noteholder Rights”) with respect to their convertible
notes (“Convertible Notes”), and such provisions may have survived the closing of that offering. Additionally, in June
2024 we issued warrants that contain an “alternative cashless exercise” provision which gives the warrant holder the right
to exchange the warrant on a one-for-one basis for shares of Common Stock at any time that the warrant is exercisable without any cash
payment and without regard to the then market price of the Company’s Common Stock or exercise price of the warrant, many of which
warrants have already been exercised pursuant to the “alternative cashless exercise” provision. In addition, the June Warrants,
the November Series A Warrants and the Series A Warrants issued at the First Closing include a provision that resets the warrant exercise
price with a proportionate adjustment to the number of shares underlying the warrant in the event of a reverse split of the Company’s
Common Stock at any time between the issuance date and the three-year anniversary of the issuance date (a “Share Combination Event”).
In the event of a Share Combination Event, the exercise price of the warrants will be reset to a price equal to the lesser of (i) the
then exercise price and (ii) the lowest volume weighted average price (VWAP) during the period commencing five trading days immediately
after the date the Company effects a reverse stock split, subject to a floor price of $2.832 for the June Warrants, $0.806 for the November
Series A Warrants and $0.312 for the Series A Warrants issued at the First Closing (as may be adjusted in the future for any stock dividend,
stock split, stock combination, reclassification or similar transaction, the “Floor Price”). The June Warrants, the
November Series A Warrants and the Series A Warrants issued at the First closing are also subject to full ratchet anti-dilution protection
for any issuances of Company securities (other than certain excluded issuances) at a price