Company: ZCARW
Filing Date: 2025-01-21
Form Type: DEF 14A
Source: 0001213900-25-005022
Chunk: 36

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-01-21
Form: DEF 14A
Chunk 36
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 Bonus,” on
or before January 3, 2025, in the amount of $500,000, $250,000 of which is payable, in cash, and the remaining $250,000 of which is payable
by the issuance of 17,794 shares of unregistered Common Stock, which had a value of $250,000 on the effective date of the Consulting Agreement.

Because our Common Stock is
currently listed on the Nasdaq Global Market, we are subject to the Nasdaq Listing Rule 5635(c).

Nasdaq Listing Rule 5635(c)

Nasdaq Listing Rule 5635(c) requires stockholder approval for the issuance
of securities when a stock option or purchase plan is established or materially amended or other equity compensation arrangement made
or materially amended, pursuant to which shares of Common Stock may be acquired by officers, directors, employees or consultants of the
Company. Since the Consultant is receiving the 17,794 shares of Common Stock being issued to him as compensation, such issuance is being
submitted to the stockholders for their approval.

Reasons for the Issuance of Common Stock to the Consultant

As described above, the Company
is a party to the Consulting Agreement with the Consultant, pursuant to, among other compensation, the Company is obligated to pay the
Consultant a “Joining Bonus,” on or before January 3, 2025, in the amount of $500,000. As a result of the Company’s
need to conserve cash to allocate to the Company’s operations, it was determined to be in the best interests of the Company and
its stockholders, to pay 50% of the “Joining Bonus” by issuing to the Consultant shares of Common Stock having a value of
$250,000. In order to do so, as explained above, such issuance of shares to the Consultant requires the approval of the Company’s
stockholders, which we are seeking hereby.

Effect upon Rights of Existing Stockholders

The issuance of shares of
Common Stock to the Consultant in accordance with the Consulting Agreement would dilute, and thereby reduce, each existing stockholder’s
proportionate ownership in in the Company. The stockholders do not have preemptive rights to subscribe for additional shares that may
be issued by the Company in order to maintain their proportionate ownership of the Common Stock.

Vote Required

The approval of this proposal
requires the affirmative vote of the majority of shares cast on the proposal. Abstentions and broker non-votes