Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 416

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 416
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 The Company did
not receive any cash proceeds in the Third Closing. The securities were issued to the investors either (i) as consideration for waiving
certain rights that such investors may have had in connection with a most favored nations provision included in the transaction documents
for a prior financing of Zoomcar, Inc. or (ii) to settle outstanding amounts owed by the Company to its Placement Agent and the Legal
Counsels (Aegis Settlement and Law Firm Settlement described below). Pursuant to the terms and conditions of the Securities Purchase Agreement,
the Company issued to such investors an aggregate of $15,639,099 of securities consisting of 501,318 shares of common stock of the Company,
par value $0.0001 per share (the Common Stock). The Company along with the Common Stock issued (i) Series A Warrants to purchase up to
an aggregate of 6,706,192 shares of Common Stock at an exercise price of $6.24 per share, which takes into account a “share combination
event” adjustment effective following the issuance of such warrants as a result of the Reverse Split (the “Series A Warrants”)
and (ii) Series B Warrants to purchase initially no shares of Common Stock and then up to a maximum of 2,004,955 shares of Common Stock
subject to certain adjustments, at an initial exercise price of $0.002.

The Company had filed a registration
statement on Form S-1 on May 05, 2025, which did not take effect for resale of the securities that were issued in the Third Closing.

Thereafter, on June 6, 2025,
the Company issued a settlement letter (the “Settlement Letter”) to each of the investors from the First and the Second Closings
(the “Settlement Investors”), pursuant to which the Settlement Investors agreed to the settlement of liquidated damages arising
from Section 2.4 of the Registration Rights Agreements with the Investors, entered into on December 23, 2024 and January 31, 2025, respectively
(“RRAs”). Under the provisions of the Settlement Letter, the Company agreed to issue an aggregate of 1,950,600 pre-funded
warrants with an aggregate value of US$3,023,400 to the Settlement Investors (the “Settlement Warrants”), with each Settlement
Warrant having an exercise price of $0.0001 per share of Common Stock, in consideration for the full payment of liquidated