Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 84

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 84
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 all of
the New Warrants are exercised for cash, we will receive gross proceeds of approximately $6.7 million. We
filed a registration statement on Form S-1 (File No. 333-280676) registering the shares of common stock issuable upon the exercise of
the New Warrants. The SEC declared the registration statement effective on July 12, 2024. The New Warrants can be exercised on a cashless
basis if there is not an effective registration statement effective or prospectus available for the shares of common stock underlying
the such warrants.

4

March
2024 Direct Offering and Concurrent Private Offering

On
March 18, 2024, we entered into a securities purchase agreement (the “2024 Securities Purchase Agreement”) with a certain
institutional investor (the “2024 Purchaser”) pursuant to which we sold, in a registered direct offering, an aggregate of
(i) 237,224 shares (the “2024 Shares”) of common stock and (ii) 147,790 Pre-Funded Warrants (the “2024 Pre-Funded Warrants”)
to purchase up to 147,790 shares of common stock (the “2024 Pre-Funded Warrant Shares”). The offering price per 2024 Share
was $7.40, and the offering price per 2024 Pre-Funded Warrant was $7.399.

The
2024 Shares, the 2024 Pre-Funded Warrants and the 2024 Pre-Funded Warrants Shares were offered pursuant to our Form S-3 Registration
Statement (File No. 333-267696) (the “Form S-3”) as supplemented by a prospectus supplement and accompanying base prospectus
dated March 18, 2024, filed with the SEC on March 19, 2024 pursuant to Rule 424(b)(5) promulgated under the Securities Act. The registered
direct offering closed on March 20, 2024.

We
received net proceeds of approximately $2.59 million from the offering, after deducting the estimated offering expenses payable by us,
including the tail fees payable to Maxim Group LLC. We intend to use the net proceeds from the offering for general corporate purposes,
including working capital.

In
a concurrent private placement, we issued the 2024 Purchaser warrants to purchase an aggregate of 770,027 shares of common stock for
$7.40 per share. Under the warrants, we are obligated