In a recent transaction, Hiroshi Nishijima, Acting CEO of Zoomcar Holdings, Inc. (NASDAQ:ZCAR), acquired a significant amount of the company's stock. The micro-cap company, currently valued at $4.2 million, has seen its stock price rise to $2.05, representing a 31% gain from the CEO's purchase price, though it remains down 99.5% over the past year. On December 24, Nishijima purchased 32,052 shares of common stock at a price of $1.56 per share, totaling $50,001. This acquisition was part of a broader transaction that also included Series A and B warrants. The Series A warrants are subject to stockholder approval and will be exercisable for five years post-approval. The Series B warrants, while not initially exercisable, could potentially convert to up to 128,208 shares following a reset date, pending stockholder approval. According to InvestingPro, the company faces significant financial challenges, with a concerning current ratio of 0.07 and substantial debt burden. Subscribers can access 15 additional ProTips and comprehensive financial analysis for ZCAR.
In other recent news, Zoomcar Holdings, Inc. has been navigating a series of significant developments. The auto rental and leasing services provider reported a private placement of equity securities to raise between $4 million and $30 million, a move aimed at easing the firm's significant debt burden and rapid cash burn rate. The offering, priced at $1.56 per share, raised $5.48 million in gross proceeds.
Concurrently, Zoomcar faces potential delisting from Nasdaq due to non-compliance with several listing requirements, including the minimum market value and publicly held shares rules. The firm has until January 21, 2025, to regain compliance and plans to request a hearing before the Nasdaq Hearings Panel to present a plan to achieve compliance.
In board-related developments, a recent resignation has left a vacancy, with no immediate plans for replacement. However, shareholders have elected two Class I directors, Swatick Majumdar and John Clarke, to the board. They also approved a reverse stock split and consented to the exercise of the Bridge Warrants, potentially resulting in the issuance of over 20% of Zoomcar's outstanding common stock.
Adding to the leadership team, Waze Co-Founder Uri Levine has been reappointed as Strategic and Financial Advisor. Finally, Grant Thornton Bharat LLP was ratified as the company's independent registered public accounting firm for the fiscal year ending March 31, 2025. These are the latest developments in the company's operations.
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