Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 42

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 42
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 Offering provide that if the Company enters into a Variable Rate Transaction (as defined in each class of warrant), then such warrants will automatically adjust down to the lowest price that the Company shall be deemed to have issued shares of Common Stock at the lowest exercise price at which such Warrants herein may be exercised, subject to the applicable Floor Price. As a result, of any of the foregoing, the exercise price of the Series A Warrants issued in the December Offering and January/February Offering would be reduced in the event of any subsequent Variable Rate Transaction, subject to the $6.24 Floor Price. All other warrants have already been reduced to their applicable Floor Price and, therefore, no further adjustments are applicable. 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, which are presently in default (and are the subject of a demand letter sent by the ACM to the Company for immediate payment and a notice of motion for summary judgement as described in more detail herein), contain price based anti-dilution protection on the conversion price of such Notes down to a floor price of $25 per share which has already been reached. Additionally, while the holder of the Notes 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