Loan & DebtMay 13, 2026, 05:07 PM
Xos Reduces Convertible Note Conversion Price to $12.00
AI Summary
Xos, Inc. and Aljomaih Automotive Co. executed a Third Amended and Restated Convertible Promissory Note on May 8, 2026, for the original $20 million note. The amendment significantly reduced the conversion price from $71.451 to $12.00 per share. It also introduced a mandatory conversion feature, allowing Xos to compel conversion if its common stock's Daily VWAP exceeds $16.00 for a specified period. The note carries a 10.0% annual interest rate, payable in shares, and has a maturity date of February 11, 2028, with a schedule of mandatory prepayments.
Key Highlights
- Third Amended and Restated Convertible Promissory Note with Aljomaih Automotive Co. signed May 8, 2026.
- Original principal amount of the convertible note is $20,000,000.
- Conversion price reduced from $71.451 per share to $12.00 per share.
- Mandatory conversion feature added if Daily VWAP exceeds $16.00 for 20 of 30 trading days.
- Note accrues interest at 10.0% per annum, payable in Common Stock.
- Maturity Date for the note is February 11, 2028.
- Mandatory prepayments include $1,500,000 due May 11, 2026.