Last-mile drone delivery specialist Workhorse Group has announced that it has received $70 million (£56 million) in financing from a single investor.
The Senior Secured Convertible Note will be used for current operating working capital and other general corporate purposes.
“With this note in place, we have much greater financial flexibility to support our current and future production needs,” said Workhorse CEO Duane Hughes. “Heading into the second half of the year, we’ll be looking to meet our previously stated annual delivery target, which should have us in a strong position to accelerate our production ramp into 2021.
“Successful vehicle production and delivery should also lead to additional orders as we demonstrate our ability to meet our current demand and provide road-ready last-mile delivery EVs.”
Last-mile delivery is used to speed up the final stage of the delivery process of goods. This is often for consumer packages in remote locations, or for humanitarian aid.
Workhorse has its own drone, the HorseFly, for such missions.
Workhorse CFO Steve Schrader added: “This financing will also allow us to continue to pursue a credit revolver, which we believe is the best financing vehicle for ramping up production.
“We expect these proceeds to provide corporate operating funds for the foreseeable future.”
Workhorse added another patent to its portfolio earlier this year. Read more below: