Arcimoto, Inc.® makers of the Fun Utility Vehicle® , Rapid Responder™, and Deliverator™, was pleased to announce the retirement of all of its convertible promissory notes with the repayment of an aggregate of approximately $769,000 of its notes and the conversion of $1.4 million of debt to equity at $4.25 per share. This was in addition to the $3.45 million senior secured note that was repaid on June 15, 2020. As a result, $5.6 million of debt and liabilities has been extinguished from the Company’s balance sheet, leaving the company debt free except for $1.6 million equipment capital lease financing as referenced in the Company’s 10-Q for the period ending March 31, 2020.
In connection to the retirement of its convertible notes, President and Founder Mark Frohnmayer and family members have converted approximately $619,000 at $4.25 per share.
Mark Frohnmayer, CEO and Founder of Arcimoto commented that, the elimination of debt coupled with the recent equity raised significantly strengthening their balance sheet as they moved forward to the next stage of development of the Arcimoto endeavor. This followed on the heels of their recent deployment of Deliverator™ pilot vehicles for ultra-efficient, pure electric last-mile delivery. As an investor, he has never been more enthusiastic about the venture. Converting the entirety of his debt holdings to equity was an easy call.