Nxu Inc., a Delaware corporation listed on the Nasdaq Capital Market, has announced the completion of a significant corporate action involving a private placement transaction with Lynks Motor Corporation. The transaction, which was approved by written consent of the majority stockholders on December 22, 2023, involved the issuance of 1,000 newly issued shares of Series A Convertible Preferred Stock by Nxu Inc. to Lynks in exchange for a 15% equity interest in Lynks. This strategic move aims to regain compliance with Nasdaq's minimum stockholders' equity requirement for continued listing. The approval process bypassed the need for a stockholder meeting, utilizing Section 228 of the General Corporation Law of the State of Delaware, which allows actions to be taken by written consent. The corporate action...Show More

Nxu Inc., a Delaware corporation listed on the Nasdaq Capital Market, has announced the completion of a significant corporate action involving a private placement transaction with Lynks Motor Corporation. The transaction, which was approved by written consent of the majority stockholders on December 22, 2023, involved the issuance of 1,000 newly issued shares of Series A Convertible Preferred Stock by Nxu Inc. to Lynks in exchange for a 15% equity interest in Lynks. This strategic move aims to regain compliance with Nasdaq's minimum stockholders' equity requirement for continued listing. The approval process bypassed the need for a stockholder meeting, utilizing Section 228 of the General Corporation Law of the State of Delaware, which allows actions to be taken by written consent. The corporate action is set to be effective on or about February 5, 2024. The transaction is expected to have a dilutive effect on existing stockholders' voting power and could potentially affect the trading price of Nxu's Class A Common Stock once the shares underlying the Series A Preferred Stock are publicly resold, as per the registration rights agreement with Lynks. The company has filed the necessary documentation with the SEC, and the information statement was first mailed to stockholders on January 16, 2024.