Workhorse Group Plunges 15.41% Amid Potential Merger Talks

On July 14, 2025, Workhorse Group's stock experienced a significant drop of 15.41% in pre-market trading, sparking investor concern and speculation about the company's future prospects.

Workhorse Group, an American technology company focused on zero-emission commercial vehicles, announced it is in discussions with a privately held U.S.-based manufacturer of electric commercial vehicles regarding a potential transaction. The deal involves merging the manufacturer into a newly created subsidiary of Workhorse in exchange for newly issued shares of Workhorse's common stock. This transaction could result in the current investors of the manufacturer holding a substantial majority of Workhorse's outstanding common stock.

The potential transaction also includes a refinancing of Workhorse's outstanding senior secured convertible notes and the cancellation of related warrants. The refinancing would be funded by a new convertible note and an approximately $20 million sale-leaseback of Workhorse's Union City, Indiana manufacturing facility. This move aims to repay outstanding obligations under the notes in full without requiring a redemption premium or other penalties.

Additionally, the investor's right to require Workhorse to issue additional notes would be terminated, and all outstanding warrants would be cancelled. In return, Workhorse would issue the investor three million shares of newly issued common stock, subject to contractual trading restrictions. This potential transaction reflects Workhorse's strategic efforts to strengthen its financial position and expand its market presence in the electric vehicle sector.