Worksport Ltd. has entered into an agreement with a warrant holder to induce the exercise of existing warrants, expecting to raise approximately $2.3 million in gross proceeds. The holder will exercise warrants for 3.84 million shares at a reduced price, and in return, will receive new warrants to purchase an additional 4.8 million shares.
Key Details
- Gross Proceeds: The company anticipates receiving aggregate gross proceeds of approximately $2,304,252 from the transaction, intended for general corporate and working capital purposes.
- Agreement Terms: A holder of warrants originally issued in December 2025 (exercisable at $2.90) has agreed to exercise them to purchase 3,840,421 shares of common stock at a reduced price of $0.60 per share.
- Inducement: As consideration, Worksport will issue new warrants to the holder, allowing the purchase of up to 4,800,526 shares (125% of the shares exercised). These new warrants have an exercise price of $0.60 per share, become exercisable six months after issuance, and expire five years after that date.
- Timeline: The agreement was entered into on August 27, 2026, with the closing of the transaction expected on or about August 28, 2026.