Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 131

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 131
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64 following receipt of stockholder approval (in each case, adjusted for any stock dividend, stock split, stock combination, reclassification
or similar transaction, the “Floor Price”). The warrants are also subject to full ratchet anti-dilution protection
for any issuances of Company securities (other than certain excluded issuances) at a price or effective price (as determined in accordance
with the terms of the warrant, the “Dilutive Issuance Price”) that is less than the then current exercise price of
the warrants following the issuance date (a “Dilutive Issuance”). In the event of a Dilutive Issuance, the exercise
price of the warrants will be reduced to the lower of the Dilutive Issuance Price and the lowest VWAP during the five consecutive trading
days commencing after the date of the Dilutive Issuance, in each case, subject to the Floor Price, and there will be a proportionate adjustment
to the number of shares underlying the warrant. In connection with the Business Combination, we also issued the Notes to ACM in satisfaction
of certain transaction expenses associated with the Business Combination. The Notes contain price based anti-dilution protection on the
conversion price of such Notes down to a floor price of $500 per share (considering both reverse stock splits effectuated by the Company)
which has already been reached. While the Notes have already converted into the maximum number of shares permissible under the terms of
the Notes without receiving stockholder approval, we may seek stockholder approval in the future to allow for the Notes to convert into
additional shares. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership
interest will be diluted, anti-dilution provision may be triggered, and the terms of the newly issued securities may include liquidation
or other preferences that adversely affect your rights.

Any future adjustments to
the exercise price of the warrants (or additional issuances to make the Financing Investors whole) may have a negative impact on the trading
price of our Common Stock. Additionally, raising additional capital with new investors may be difficult as a result of anti-dilution protection.
Sales of substantial amounts of Common Stock in the public market, or the perception that such sales could occur, could materially adversely
affect the market price of the Common Stock and may make it more difficult for you to sell your securities at a time and price which you
deem appropriate.

84

In addition to our defaults under current