![]() ![]() ![]() Moreover, during the pertinent quarter, Workhorse’s net loss worsened to $131.3 million from a net loss of $20 million in the comparable quarter last year. “Currently, as a result of the Company's $70 million financing and the exercising of previously issued stock warrants and options, the Company has approximately $105 million of cash availability.” The company had noted in its Q2 2020 earnings release: As an illustration, Workhorse was forced to buffer its flagging liquidity by securing $70 million in financing through the issuance of Senior Secured Convertible Notes in July 2020. Bear in mind that the contract is a vital lifeline for the company, expected to reverse its accelerating cash burn problem. Given the magnitude of outsized gains registered by Workhorse shares so far this year, a bloodbath remains the only rational outcome if Workhorse fails to become a part of the USPS NGDV contract. Consequently, investors should remain vigilant as their unrealized gains may be impacted by an avalanche of selling amid a broader liquidation. ![]() Now that this favorable outcome has been delayed at best, the stock remains susceptible to a severe downturn. Since the 1st of June, Workhorse shares have recorded a gain of over 900 percent! These astounding gains were largely driven by investor frenzy amid widespread speculation of Workhorse winning the crucial NGDV contract award. This brings us to the crux of the matter. ![]()
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