03:17 PM EDT, 07/14/2025 (MT Newswires) -- Workhorse Group ( WKHS ) said Monday it is engaging with a private US electric commercial vehicle maker for a potential merger.

The EV maker will merge into a new subsidiary of Workhorse in exchange for newly issued shares of its common stock, according to a statement.

The transaction also involves a potential refinancing of Workhorse's outstanding senior secured convertible notes and cancellation of the linked warrants issued to an institutional investor, the company said.

The proceeds of a new convertible note and nearly $20 million sale leaseback of the company's Union City, Indiana, manufacturing facility will be offered by entities related to the current holder of a majority of the equity interests of the EV maker, it added.

Upon the closing of the refinancing, Workhorse would clear its nearly $33 million outstanding under the notes and offer three million shares of newly issued common stock to the investor, according to a company statement.

Shares fell 36% in recent trading.

Price: 2.69, Change: -1.73, Percent Change: -39.14