Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 58

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 58
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5,997,832.72 pursuant to the terms of an unsecured promissory
note issued by Zoomcar to ACM on December 28, 2023 (“Note”) as consideration for certain alleged, bona fide expenses that
ACM’s members had aggregated and assigned to ACM for collection from Zoomcar. As alleged by ACM in its moving papers, two
“Events of Default” (as defined in the Note) had occurred thereby entitling ACM to full and accelerated payment of the Note.
The first was a Form 8-K, filed by Zoomcar on May 9, 2024, which allegedly disclosed that on May 6, 2024, Zoomcar had entered into an
equity line arrangement and “Variable Rate Transaction” (as defined in the Note) with White Lion Capital LLC (“White
Lion”). The second was a Form 8-K, filed by Zoomcar on June 21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar
had incurred a form of debt that was not “Excluded Debt” (as defined in the Note) arising from its placement agent agreement
with Aegis Capital Corp. without ACM’s prior consent. The Note generally provides that, upon the occurrence of an Event of
Default, all accrued but unpaid interest plus liquidated damages and other amounts thereof shall become immediately due and payable to
the Note holder.

Zoomcar believes it has meritorious
defenses to the Motion and intends to zealously defend itself. As such, on January 14, 2025, Zoomcar filed opposition to the Motion.
In relevant part, Zoomcar challenged the fact allegations concerning: (i) the first Form 8-K by tendering to the Court evidence
confirming that the subject transaction with White Lion in fact had been terminated and the underlying filing of a Form S-1 registration
statement contemplated in that transaction was never effectuated; and (ii) the second Form 8-K by tendering to the Court evidence confirming
that the subject transaction involved Excluded Debt. The effect of the foregoing is the transactions were excluded from the definitions
of Events of Default and extinguished ACM’s alleged entitlement to accelerated payment under the Note. Additional defenses
were also presented by Zoomcar to the Motion. On February 28, 2025, ACM filed its reply to the opposition. The fully-briefed
Motion was deemed “submitted” to the Court. The parties await a Decision and