Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 464

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 464
---
 plaintiff
alleges that the terms of the engagement letter entitle him to cash and warrants to purchase Zoomcar shares in relation to prior Zoomcar
transactions and upon consummation of the proposed Business Combination. The complaint seeks declaratory relief affirming the plaintiff’s
alleged continuing right to receive compensation from Zoomcar under the engagement letter, together with attorneys’ fees, costs,
and interests, as well as punitive damages. A motion to dismiss filed by the Company has been denied vide the orders passed on October
9 and October 16, 2024. Subsequently the Company has filed its response to the allegations levelled in the complaint. Subsequently
on February 4, 2025, the parties executed a settlement agreement wherein the Company agreed to issue to Mr. Randall Yanker and/or his
designees an aggregate of (i) 1,000,000 Shares and/or Pre-Funded Warrants, (ii) Series A Warrants to initially purchase up to an aggregate
of 2,500,000 shares of Common Stock, subject to certain adjustments, and (iii) Series B Warrants (all of the warrants collectively referred
to as “Units”), in connection with Reg D Private Placement(defined elsewhere in this Form on 10-Q) post which Mr. Randall
Yanker shall withdraw the said complaint.

80

On January 30, 2024, Zoomcar
received a statement of arbitration claim (the “Claim”) before Judicial Arbitration and Mediation Services, Inc. (“JAMS”),
with Aegis Capital Corp. (“Aegis”), Adam Stern, and the Robert J. Eide Pension Plan being the claimants therein. The Claim
alleges breaches of certain agreements between (a) Aegis and Zoomcar, and (b) Adam Stern and the Robert J. Eide Pension Plan as warrant
holders, on the one hand, and Zoomcar on the other; it seeks damages “preliminarily believed to be” at least $10,000,000 purportedly
arising from the alleged breaches, though the Claim does not set forth any basis for that preliminary belief, additional amounts for attorneys’
fees and costs, as well as an order of rescission with respect to the issuance of certain allegedly wrongfully dilutive shares of Zoomcar
stock issued in connection with the business combination between Zoomcar and Innovative International Acquisition Corp. or, alternatively,
an order mandating a purportedly anti-dilutive issuance of additional