Nxu Repays Nearly $20 Million of Convertible Notes

Rhea-AI Summary

Nxu Inc., a technology company developing EV charging and energy storage solutions, has converted $20 million of convertible notes into $100,000, substantially decreasing its liabilities. The deal involved two investors and resulted in two tranches of $9 million each. The repayment strengthens Nxu's balance sheet and provides flexibility for its charging infrastructure business.

Institutional Investors Who Participated in 2022 Deal Have Substantially Converted, Significantly Decreasing Nxu’s Liabilities

MESA, Ariz., Nov. 06, 2023 (GLOBE NEWSWIRE) -- Nxu Inc., (NASDAQ: NXU) (“Nxu”, “the Company”), a domestic technology company developing and manufacturing innovative EV charging and energy storage solutions for the infrastructure we need to power our electrified future, has extinguished all but $100,000 of the $20 million in convertible notes (“Notes”) that were previously issued in conjunction with a 2022 private placement involving two investors (“Investors”). The deal was comprised of two convertible notes of $10 million each which resulted in two tranches of $9 million each in proceeds to Nxu. The first tranche disbursed in Q4 2022 and the second in Q1 2023. Through the conversions, Nxu has substantially paid off its convertible Notes and cleared the corresponding liabilities from its balance sheet. The Investors still hold warrants to purchase up to 1,711,306 shares of Class A common stock.

“The substantial repayment of the Notes greatly strengthens our balance sheet,” said Nxu Chief Financial Officer Apoorv Dwivedi. “Additionally, this provides the Company with increased flexibility to execute on our strategy to develop and grow our charging infrastructure business.”

About Nxu, Inc.

Nxu, Inc. is a domestic technology company leveraging its intellectual property and innovations to support e-Mobility and energy storage solutions. Driving the energy future, Nxu is developing an ecosystem of industry-leading grid level energy storage solutions, charging infrastructure and over-air cloud management – encompassed by Nxu’s seamless subscription-based models. For more information, visit www.nxuenergy.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our future areas of focus and expectations for our business. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements. Such forward-looking statements include statements regarding, among other things, Nxu’s expectations about its long term growth strategy, future growth trajectory, revenue and operations; Nxu’s technology and alignment with broader trends in the EV market; opportunities presented by electrification; beliefs about the general strength, weakness or health of Nxu’s business; and beliefs about current or future trends in EV battery materials or other markets and the impact of these trends on Nxu’s business. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent report on Form 10-K, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at www.nxuenergy.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

Contact:

investors@nxuenergy.com

FAQ

What is the name of the company mentioned in the press release?

The company mentioned in the press release is Nxu Inc.

What is Nxu Inc. known for?

Nxu Inc. is known for developing and manufacturing EV charging and energy storage solutions.

What was the total amount of convertible notes issued in the 2022 private placement?

The total amount of convertible notes issued in the 2022 private placement was $20 million.

How much of the convertible notes have been converted?

All but $100,000 of the $20 million convertible notes have been converted.

How many investors were involved in the private placement?

The private placement involved two investors.

How much did each tranche of the convertible notes amount to?

Each tranche of the convertible notes amounted to $9 million.

What is the current liability remaining on the balance sheet?

The current liability remaining on the balance sheet is $100,000.

What do the Investors still hold?

The Investors still hold warrants to purchase up to 1,711,306 shares of Class A common stock.

What does the Chief Financial Officer of Nxu Inc. say about the repayment?

The Chief Financial Officer of Nxu Inc. states that the substantial repayment of the Notes greatly strengthens their balance sheet and provides increased flexibility for their charging infrastructure business.