Volcon, Inc. Announces Successful Closure of $12.0 Million Underwritten Public Offering

On February 6, 2025, Volcon, Inc. (NASDAQ:VLCN), the innovative all-electric off-road powersports company headquartered in Round Rock, Texas, disclosed the completion of a significant financial transaction. The company finalized an underwriting agreement with Aegis Capital Corp. related to a firm commitment underwritten public offering. This agreement marked a pivotal moment for Volcon, leading to notable changes in its financial landscape.

In the underwriting agreement dated February 5, 2025, Aegis Capital Corp. acted as the Underwriter, facilitating the offering. Volcon’s public offering comprised 430,000 common units, each consisting of one share of common stock and one warrant to purchase an additional share. Additionally, 5,570,000 pre-funded units were included in the offering, consisting of pre-funded warrants and common warrants. The purchase price for each common unit was set at $2.00, while pre-funded units were priced at $1.99999 each.

The company successfully closed the offering on February 6, 2025, raising approximately $12.0 million in gross proceeds. These proceeds, after deduction of underwriting discounts and associated expenses, represent a significant financial influx for Volcon. The offering, conducted under a prospectus supplement filed with the SEC, falls in line with the company’s effective shelf registration statement on Form S-3 (Registration No. 333-269644).

As outlined in the underwriting agreement, Aegis Capital Corp. received an underwriting discount and an expense allowance from Volcon. Moreover, the company undertook to reimburse certain expenses of the Underwriter, adhering to standard industry practices and regulations. The offering was accompanied by customary representations, warranties, and agreements agreed upon by both parties.

In a related development, Volcon issued a press release on February 5, 2025, regarding the pricing of the offering, followed by a subsequent press release on February 6, 2025, to announce the closing of the transaction. Post-offering activities included the exercise of previously issued pre-funded warrants and subsequent exercises of warrants to purchase common stock.

The substantial capital injection resulting from this offering positions Volcon, Inc. favorably for its future operational and strategic initiatives. The net proceeds derived from the offering are earmarked for working capital needs and general corporate purposes, in line with the company’s growth and expansion plans.

The meticulous details of the underwriting agreement, common warrants, and pre-funded warrants can be accessed through the full text of the respective agreements filed as Exhibits 1.1, 4.1, and 4.2. These exhibits provide comprehensive insights into the terms and conditions governing the offering.

Volcon, Inc.’s successful underwritten public offering signifies a significant milestone in its financial journey, underscoring the company’s commitment to sustained growth and innovation in the electric power sports sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Volcon’s 8K filing here.

Volcon Company Profile

Volcon, Inc develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications.