Xos Amends $20M Convertible Note, Drastically Cuts Conversion Price to $12.00

summarizeSummary

Xos, Inc. amended a $20 million convertible note with Aljomaih Automotive Co., significantly reducing the conversion price from $71.45 to $12.00 per share and adding a mandatory conversion feature.

check_boxKey Events · Financing and Capital Events · XOS

• Convertible Note Amended

  Xos, Inc. entered into a Third Amended and Restated Convertible Promissory Note with Aljomaih Automotive Co. on May 8, 2026, for an original principal amount of $20 million (with approximately $17 million currently outstanding).

• Conversion Price Drastically Reduced

  The conversion price for the note was lowered from $71.451 per share (adjusted for a prior reverse stock split) to $12.00 per share.

• Mandatory Conversion Feature Added

  The amended note includes a new feature allowing the company to compel conversion of the note into common stock if the daily volume-weighted average price (VWAP) exceeds $16.00 for at least 20 out of 30 consecutive trading days.

auto_awesomeAnalysis · XOS · Manufacturing

This amendment to a significant convertible note is critical for Xos, Inc., a company facing going concern warnings and material weaknesses. The drastic reduction in the conversion price from $71.45 to $12.00 per share, while still above the current market price, makes future conversion much more plausible. This increases the potential for substantial dilution if the stock recovers. The new mandatory conversion feature provides the company with a mechanism to reduce its debt burden if the stock price improves, but at the cost of issuing shares at $12.00. This official company disclosure follows a Form 4 filing on May 12, 2026, which first indicated this change from the 10% owner's perspective.