Nxu Inc., a Delaware corporation listed on the Nasdaq, has announced the completion of a private placement transaction with Lynks Motor Corporation. The transaction involved the issuance of newly issued Series A Convertible Preferred Stock by Nxu Inc., which will be convertible into Class A Common Stock, in exchange for a 15% equity interest in Lynx. This corporate action was approved by written consent from stockholders holding a majority of Nxu's issued and outstanding voting securities, in compliance with Nasdaq Listing Rules 5635(a) and 5635(d). The approval was obtained without the need for a stockholder meeting, as permitted by Section 228 of the General Corporation Law of the State of Delaware. The Board of Directors believes this private placement is in...Show More

Nxu Inc., a Delaware corporation listed on the Nasdaq, has announced the completion of a private placement transaction with Lynks Motor Corporation. The transaction involved the issuance of newly issued Series A Convertible Preferred Stock by Nxu Inc., which will be convertible into Class A Common Stock, in exchange for a 15% equity interest in Lynx. This corporate action was approved by written consent from stockholders holding a majority of Nxu's issued and outstanding voting securities, in compliance with Nasdaq Listing Rules 5635(a) and 5635(d). The approval was obtained without the need for a stockholder meeting, as permitted by Section 228 of the General Corporation Law of the State of Delaware. The Board of Directors believes this private placement is in the best interests of Nxu Inc., as it aims to regain compliance with Nasdaq's minimum stockholders' equity requirement. The transaction closed upon signing the Share Exchange Agreement on December 27, 2023, and the corporate action is expected to be effective in January 2024. The issuance of securities will have a dilutive effect on existing stockholders' voting power and could potentially affect the trading price of Nxu's Class A Common Stock. A registration rights agreement was also entered into, requiring Nxu to file a registration statement for the resale of the Class A Common Stock underlying the Series A Preferred Stock. The information was disseminated to stockholders in accordance with SEC regulations, and no further action or consent from stockholders is required.