Workhorse Group Inc (WKHS)

[busterator]

Calculate minimum equity raise (more than required by Arosa)

$10M to meet Loan Covenant
$1.85M to pay off Spring Bank Mortgage on Loveland building as required by Amendment 1 to Loan
$12.5M total

Now, remember that the compny needs enough raw material + parts to deliver $9M of backlog. They hope to get to positive gross margins on material at 2000 trucks/year, so at $9M worth of trucks in the initial run they will probably need $10M at least. Also they have $5M+ of accounts payable that are very delinquent, and the Loan Covenants will hold WKHS in default for any inability to pay.

So actually they need $15M to take care of suppliers alone.

The Selling General and Administrative costs in Q2 had risen to $3M and Research and Development were only $1.8M which must rise to recover some of the schedule slip in all their projects. Even with best-case incoming cash (~$3M) there is a additional spend that even the $15M raise can't meet.

At least $20M just to get into the latter half of Q4 at best. And they are still under Arosa's thumb.

Approx $20M is about a 30% dilution.

Nest stop barring presumed great news is $1.