Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 573

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 573
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 addition, the warrants include a provision that resets the warrant exercise price with
a proportionate adjustment to the number of shares underlying the warrant in the event of a reverse split of the Company’s Common
Stock at any time between the issuance date and the three year anniversary of the issuance date (a “Share Combination Event”).
In the event of a Share Combination Event, the exercise price of the warrant will be reset to a price equal to the lesser of (i) the
then exercise price and (ii) the lowest volume weighted average price (VWAP) during the period commencing five trading days immediately
after the date the Company effects both the reverse stock splits, subject to a floor price of $283.2 prior to receipt of stockholder approval
or $56.64 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