Volcon, Inc. Announces Improved Debt Position and Strategic Cost Reduction
18 9월 2023 - 10:30PM
Volcon Inc. (NASDAQ: VLCN), (“Volcon'' or the “Company”), the first
all-electric, off-road powersports company, announced on September
14, 2023 that it has agreed with its convertible noteholders to
modify the terms of its convertible notes and implemented cost
reduction strategies to provide the Company greater flexibility as
it pushes toward the introduction of the first of its UTV models,
the Stag, which the Company expects to begin delivering in October
2023.
The Company entered into
a note amendment with its convertible noteholders pursuant to which
the lenders agreed to, among other changes, extend the maturity of
the outstanding convertible notes from February 24, 2024 to January
31, 2025 and modify certain covenants to allow the Company to
execute its business strategy as it works toward the launch of the
Stag. The amendment is subject to completion of a security
agreement establishing a security interest in the assets of the
Company for the benefit of the noteholders. “We appreciate the
support of our noteholders in making these amendments in order to
give us the flexibility to raise capital to support the launch of
the Stag and the growth of our business,” said Jordan Davis, CEO.
Davis continued, “With our Stag launch closing in, our ability to
obtain funding to support manufacturing and to market the Stag to
the public to generate consumer demand are key factors to our
success.”
The Company recently
implemented further cost reduction initiatives and is continuing to
evaluate its cost structure to identify incremental savings. Davis
notes, "We continue to build upon our previously announced cost
reduction measures, such as closing manufacturing operations in
favor of outsourced production and reducing headcount in various
areas of the Company to support our vehicle development
strategy.”
In addition, the Company has reduced cash expenses by agreeing
to eliminate cash bonuses payable to the Company’s officers in
favor of stock awards and the Chief Executive Officer, Chief
Financial Officer and Chief Operating Officer have voluntarily
agreed to reduce their salaries by 10%. The Company’s board of
directors has also agreed that all future quarterly board cash fees
will be payable in the form of stock awards as well. Davis notes,
“The Management Team and the Board know how important the Stag is
to our Company, and we recognize we need to personally support the
cash reduction initiatives to ensure our success.”
On September 13, 2023, the Company announced additional trim
packages and pricing for the Stag. The initial response by existing
reservation holders who made deposits and viewed new trim level
selections has been positive. The Company continues to follow up
with all pre-order reservation holders to make sure they are aware
of the trim package options and answer any questions they may have.
The Company also realized new customer preorders which further
supports the Stag product line and the future of EV in powersports.
The Company has two consumer lending firms providing financing to
consumers, Synchrony Bank and Octane Roadrunner Financial, which
can be found on Volcon.com or by contacting Volcon dealers for more
information.
In addition, the Company’s sales team is connecting with dealers
and distributors to place pre-orders. The overwhelming majority of
dealers are committed to selling Volcon products and are excited
that the Stag is finally coming to market. The Company is also
working with a finance company to obtain a facility that will allow
the Company to place Stags with dealers for small cash outlays
allowing the Company to generate cash to reinvest in additional
dealer placements. This facility will allow dealers to finance
their Stag purchases.
About Volcon
Based in the Austin, Texas area, Volcon was founded as the first
all-electric powersports company producing high-quality and
sustainable electric vehicles for the outdoor community. Volcon
electric vehicles are the future of off-roading, not only because
of their environmental benefits, but also because of their near
silent operation, which allows for a more immersive outdoor
experience.
Volcon's 2023 vehicle roadmap includes both motorcycles and UTVs
hitting the market in North America. Its first product, the
innovative Grunt, has been shipping to customers since late 2021
and combines a fat-tired physique with high-torque electric power
and a near-silent drive train. Volcon just announced the launch of
the Grunt EVO, an evolution of the original Grunt with a belt
drive, an improved suspension and seat. Volcon also just announced
the launch of the Runt LT, which is a fun-sized version of the
groundbreaking Grunt, is better suited for small statured riders,
more compact properties and trails, or as a pit bike at race
events, while still delivering robust off-road capabilities. The
Brat is Volcon’s first foray into the wildly popular eBike market
for both on road and off-road riding and is currently being
delivered to dealers across North America. Volcon is also launched
and is currently delivering the Volcon Youth Line of dirt bikes for
younger riders between the ages of 4 to 11. Volcon recently
launched the Stag and entered the rapidly expanding UTV market. The
Stag empowers the driver to explore the outdoors in a new and
unique way that gas-powered UTVs cannot. The Stag offers the same
thrilling performance of a standard UTV without the noise (or
pollution), allowing the driver to explore the outdoors with all
their senses.
Volcon Contacts
For Media: media@volcon.com
For Dealers: dealers@volcon.com
For Investors: investors@volcon.com
For Marketing: marketing@volcon.com
For more information on Volcon or to learn more about its
complete motorcycle and side-by-side line-up, visit:
www.volcon.com
Forward-Looking Statements
Some of the statements in this release are forward-looking
statements, which involve risks and uncertainties. Forward-looking
statements in this press release include, without limitation,
statements about the ability to agree upon a mutually acceptable
security agreement with the note holders, the anticipated
completion and timing of the delivery of the Stag vehicle and
certain anticipated cost reductions. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable as of the date made, expectations may prove to have
been materially different from the results expressed or implied by
such forward-looking statements. The Company has attempted to
identify forward-looking statements by terminology including
“believes,” “estimates,” “anticipates,” “expects,” “plans,”
“projects,” “intends,” “potential,” “may,” “could,” “might,”
“will,” “should,” “approximately” or other words that convey
uncertainty of future events or outcomes to identify these
forward-looking statements. These statements are only predictions
and involve known and unknown risks, uncertainties, and other
factors. Any forward-looking statements contained in this release
speak only as of its date. The Company undertakes no obligation to
update any forward-looking statements contained in this release to
reflect events or circumstances occurring after its date or to
reflect the occurrence of unanticipated events. More detailed
information about the risks and uncertainties affecting the Company
is contained under the heading “Risk Factors” in the Company’s
Annual Report on Form 10-K and subsequently filed Quarterly Reports
on Form 10-Q filed with the SEC, which are available on the SEC’s
website, www.sec.gov.
SOURCE: Volcon ePowersports, Inc.
Volcon (NASDAQ:VLCN)
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Volcon (NASDAQ:VLCN)
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