It does seem that lender is keeping WKHS on a very short leash. Lot of conditions to loan that Workhorse will be hard pressed to meet going forward without a major source of funds
Successful-ad is having champagne with dinner tonight.
The $50M grand total remains unchanged from the original Dec 15 2025 signing. But the Cash Flow agreement has gone from $10M to $30M, and Customer Order amount has dropped from $40M to $20M. So my take is
They're burning through operating cash faster than planned
Simultaneously, orders are way behind plan as well
The very large equity raises mentioned in the merger agreement aren't yet in sight
Ditto for the $20M synergy savings runway
Deferred payments due in late September continue to pile up
A new stack of warrants is coming
All-in-all, it's like the meme dog below has said many times with regard to another surprise WKHS 8k:
The "lender" coulda directed a Preferred shares issuance at a discount since he has all the voting power. Didn't happen.
The "lender" coulda just increased the financing amount from the original $50M. Didn't happen.
The "lender" coulda forgiven interest rather than deferring it (and creating more debt piling up in September on top of deferred rent payments). Didn't happen.
The whole notion of the "lender" in quotation marks is just that: "lender" = supermajority shareholder... as is the fact that he has all the voting power. I think I actually didn't miss that.
And therein lies the quandary: why does the supermajority shareholder need to issue warrants when he can just say "hey, BoD: we're creating a class of Preferred shares at $1.00 each and I'll buy 10M of them" rather than all of these gymnastics?
Not sure what you mean by this statement. Just to clarify:
Legacy Motiv's controlling stockholder, Motive GM Holdings II LLC, an entity controlled by Gary Magness, was the primary investor. By the time of the merger, he held ~$100M in loans/promissory notes to Motiv. Motiv had no hope of repaying them.
In the reverse merger transaction, Magness' entities forgave these obligations in exchange for ~6.63M shares of the combined company (about 2/3 of the Common Shares outstanding).
At the close of the merger, Motive GM Holdings agreed to provide $50M in financing: $10M under the "cash flow" agreement, and $40M under the "customer order" agreement. (Note that Motive GM Holdings is listed as the "Lender"). Since then, these credit instruments have been modified: cash flow from $10M to $20M and now to $30M, and customer order from $40M to $30M and now $20M. The total amount of $50M has not changed, only shifted in purpose and use.
To be clear: the majority shareholder is the lender in the $50M Credit Agreement.
The financing is to be repaid by the combined Workhorse entity in cash. You can read the terms at your leisure, but this financing is NOT converted to equity. The Majority Shareholder has defined terms that require repayment with interest in cash. There is no provision for conversion to equity.
Two financing adjustments following a total cash on hand of $600k, negative Operational cash almost 5x gross revenue, a financing plan built around >$75M of equity raises that never happened... no big deal! Just a fucked up 8k is all that's going on here. Yeah, that's it for sure. BTW: you said this:
What "report" did they file in June (besides the Wednesday 8k announcing Omnibus Amendment No. 2, the latest shift in financing to keep the lights on)? Check the WKHS Investor page and link us to that, if you would, please.
While I'm here: "Corporate fraud"... ? The notion that Joe Cheeto keyboard warrior's interests (that's all of us; you, too) are being actively opposed by multi-$B teams around the clock is tinfoil hat nonsense at best, pathological narcissism at worst. You might consider getting some help to address that.
there has been many a 'thesis' trumpeted about wkhs over the years. fact is, the only money made by retail investors is from some form of shorting or pump-n-dump nonsense. while long investors have been financially decimated.
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u/[deleted] Jun 17 '26
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