Worksport Secures $6.4M from Holder Exercising Warrants At Reduced Price, Issues New Inducement Warrants

 

On December 11, 2025, Worksport Ltd., a Nevada corporation (the "Company"), entered into a common stock warrant exercise inducement offer letter (the "Inducement Letter") with a certain holder (the "Holder") of existing warrants to purchase shares of the Company's common stock, par value $0.0001 per share (the "Common Stock"), at a weighted average exercise price of $6.82, issued on March 20, 2024 and March 3, 2025, respectively (the "Existing Warrants"). Pursuant to the Inducement Letter, the Holder agreed to exercise for cash its Existing Warrants to purchase an aggregate of 2,194,526 shares of Common Stock at a reduced exercise price of $2.90 per share, in consideration for the Company's agreement to issue new warrants (the "Inducement Warrants") having terms as described below, to purchase up to 3,840,421 shares of Common Stock (the "Inducement Warrant Shares"). The Company expects to receive aggregate gross proceeds of approximately $6,400,000 from the exercise of the Existing Warrants by the Holder, before deducting placement agent fees and other offering expenses payable by the Company.

 

The Company engaged Maxim Group LLC ("Maxim") to act as its exclusive financial advisor in connection with the transactions summarized above and will pay Maxim a cash fee from the gross proceeds received from the exercise of the Existing Warrants.

 

The Company expects to use the net proceeds of these transactions for general corporate and working capital purposes. The closing of the transactions contemplated pursuant to the Inducement Letter is expected to occur on or about December 12, 2025 (the "Closing Date"), subject to satisfaction of customary closing conditions.