Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 83

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 83
---
 a period of five years from the date of issuance. The
warrants contain standard adjustment provisions for stock splits, recapitalizations and reorganizations and include beneficial ownership
limitations to prevent the purchaser from exceeding certain ownership thresholds. The offering was conducted pursuant to an exemption
from registration under Section 4(a)(2) of the Securities Act or Rule 506 of Regulation D pursuant to the purchaser’s representation
as an accredited investor.

2024
Note

On
September 4, 2024, we entered into a Credit and Security Agreement with a lender, pursuant to which we issued a $1,487,200 term promissory
note (the “2024 Note”). The 2024 Note bears interest at the lesser of (i) the prime rate plus 7.00% per annum and (ii) the
maximum rate allowed by law and is secured by a mortgage on the Company’s industrial equipment collateral. The repayment of the
2024 Note is structured in 155 weekly installments. In the event of default, the lender has the right to demand immediate repayment of
the outstanding balance, including accrued interest, fees and all other amounts due under the agreement.

May
2024 Inducement Letter; New Warrants

On
May 29, 2024, we entered into an Inducement Letter with a certain investor who had purchased warrants on November 2, 2023 (the “Existing
Warrants”), exercisable for 700,000 shares of our common stock for $13.40 per share. As part of the agreement, the investor exercised
their Existing Warrants to buy 700,000 shares of our common stock at a reduced price of $5.198 per share. In consideration for the investor
exercising the Existing Warrants, we issued the investor warrants (the “New Warrants”) to purchase 1,295,000 shares of our
common stock for $5.198 per share, subject to adjustment
for stock splits, recapitalizations, and reorganizations and beneficial ownership limitations as described therein (or
via a cashless exercise in the event there is not a registration statement effective at the time of exercise). Each New Warrant
is exercisable six months after issuance, or November 29, 2024, until five and a half-year anniversary from the date of issuance. We
received net proceeds of $3,363,898, after deducting commissions and expenses, upon the exercise of the Existing Warrants. If