Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 48

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 48
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 is unable to convert any additional amounts under the Notes since the Notes have already been 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, the MFN Noteholder Rights and anti-dilution provision may be triggered
or otherwise applicable if our offer to the Financing Investors to participate in this Offering in satisfaction of the MFN Noteholder
Rights is accepted, 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 the MFN Noteholder
Rights, assuming that the MFN Noteholder Rights are not satisfied by participation in this Offering, as discussed herein, and 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.

Our entering into a settlement with ACM could result in a breach of standstill provisions in agreements we entered into in connection with the November 7 Placement.

We are currently in the process
of negotiating a settlement of a claim against us by ACM, the terms of which could breach certain restrictive covenants in the Securities
Purchase Agreements we entered into with investors, and the Placement Agent Agreement we entered into with the Placement Agent, each in
connection with the November Offering. These restrictive covenants prohibit us, subject to certain exceptions, from issuing additional
shares of Common Stock or securities convertible into or exercisable for shares of Common Stock (“Common Stock Equivalents”),
and from filing any registration statements to register for resale any of such securities, without the consent of the investors, who were
issued 50.1% of the securities issued in the November Offering, and the Placement Agent. Since we expect to issue shares of Common Stock
and Common Stock Equivalents to ACM, in connection with settlements entered into with them, and to register