Shares of Workhorse Group Inc. (NASDAQ:WKHS) jumped 2.29% to reach at $2.45 during previous trading session. The company has experienced volume of 626,845 shares while on average the company has a capacity of trading 3.88M share.
Workhorse Group, the electric vehicle company that grabbed headlines last month over a projected deal to buy General Motors’ Lordstown, Ohio factory, has raised $25 million from a group of unnamed shareholders.
The money will not go toward the factory. Instead, it will be used for the more pressing matter of keeping the company running. Under terms of the deal, shareholders will receive preferred stock and warrants to buy shares. An annual dividend will be paid out in shares of Workhorse stock.
The Cincinnati-based company is small, with fewer than 100 employees. Its biggest problem isn’t ideas or even product pipeline; it’s capital.
Workhorse has struggled financially at various points since its founding in 1998. The company stated just $364,000 in revenue in the first quarter, down from $560,000 in the same period last year. As of March 30, 2019, the company had cash, cash equivalents and short-term investments of $2.8 million, contrast to $1.5 million as of December 31, 2018.
Workhorse borrowed $35 million from hedge fund Marathon Asset Management earlier this year.
Workhorse, which was once owned by Navistar and sold in 2013 to AMP Holding, has a customer pipeline for its electric trucks that includes UPS. It’s also hoping to win a contract with the United States Postal Service.
But it needs capital to scale up. The funding gives Workhorse the capital to deliver on its existing backlog and produce its N-GEN delivery van, according to CEO Duane Hughes.
“We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year,” Hughes said in a statement.
Meanwhile, GM has been in talks since early 2019 to sell its Lordstown vehicle factory in Ohio to Workhorse Group. GM’s Lordstown factory stopped producing the automaker’s Chevrolet Cruze in March; without any new vehicles slated for the factory, workers were laid off.
Under the potential Lordstown deal, a new entity led by Workhorse founder Steve Burns would acquire the facility. Workhorse would hold a minority interest in the new entity. This new entity would allow Workhorse to seek new equity without diluting existing shareholder value.
Workhorse would build a commercial electric pickup at the plant if the deal goes through, Hughes has said.
Workhorse Group Inc. (NASDAQ:WKHS) holds the market capitalization of $143.26M along with 59.69M outstanding shares. During the last trade, stock’s minimum price has been reached out at $2.39 while the maximum trading price moved at $2.52. Currently the stock price is moving 563.51% off from the highest level of twelve months and -24.92% above from twelve months low. Workhorse Group Inc. (NASDAQ:WKHS) marked 52-week highest price level of $3.27 on N/A and 52-week lowest price level of $0.37 on N/A.
As of current trade, Workhorse Group Inc. (NASDAQ:WKHS) has shown weekly upbeat performance of 15.38%. Its six months performance indicated a bullish 373.37% movement while its yearly performance reflected a positive trend of 4.35%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 354.55%. Shares of Workhorse Group Inc. (NASDAQ:WKHS) currently have an ABR of 1.00, derived from a total of 1 opinions. The company’s price sits 83.30% above from its 50-day moving average of $1.6491 and 148.83% above from the stock’s 200-day moving average of $0.9877. The company has Relative Strength Index (RSI 14) of 62.19 along with Average True Range (ATR 14) of 0.43. Its weekly and monthly volatility is 18.31%, 19.96% respectively. The company’s beta value is at 0.57.
Workhorse Group Inc. currently has a PEG ratio of 0 where as its P/E ratio is 0. The company’s price to sales ratio for trailing twelve months is 238.76 and price to book ratio for most recent quarter is 0, whereas price to cash per share for the most recent quarter is 51.16. Workhorse Group Inc. (NASDAQ:WKHS)’s price to free cash flow for trailing twelve months is 0. Its quick ratio for most recent quarter is 0.20 along with current ratio for most recent quarter of 0.30. Total debt to equity ratio of the company for most recent quarter is 0 whereas long term debt to equity ratio for most recent quarter is 0. Workhorse Group Inc. (NASDAQ:WKHS) has a Return on Assets of -292.80%. The company currently has a Return on Equity of 405.80% and Return on Investment of 587.40%.