Volcon Enters Supplier Agreement with Venom-EV, Updates Board Committee Appointments

Volcon, Inc. (NASDAQ: VLCN) announced in its recent SEC Form 8-K filing that it has entered into a significant Supplier Agreement with Venom-EV on February 25, 2025. Under the terms of the agreement, Volcon will serve as Venom’s supply representative for its gold carts, facilitating product purchases from the manufacturer with an aggregate purchase limit of up to $3.0 million.

The agreement establishes that Venom will determine product orders and, upon delivery, payment for the products will be due on a net 90-day basis. In return, the company will receive a commission of 3% of the order price, payable concurrently with the payment for the products. Moreover, at the close of each calendar quarter, Volcon is required to issue Venom shares of its common stock based on the number of product units purchased during that period. Specifically, for each 1,000 units purchased by Venom, the company will issue shares equal to 1% of its outstanding common stock as of the last day of that quarter, with the share issuance requirement ceasing upon the sale of 5,000 units or on June 30, 2026, whichever occurs first. The agreement also provides for compensatory damages and immediate termination rights should Volcon fail to issue the obligated shares (apart from delays attributable to pending shareholder approval).

In addition to the supply agreement, Volcon’s Board of Directors approved adjustments to its board committee arrangements on February 21, 2025. The new appointments include Karin-Joyce Tjon as Chair of both the Audit and Nominating and Governance Committees, Jonathan Foster as Chair of the Compensation Committee, with additional representation by Adrian Solgaard and Orn Olason across the committees.

As part of the agreement’s execution, Venom has already placed a purchase order with Volcon for 500 vehicles, valued at approximately $2.36 million. The one-year term of the agreement provides for potential one-year extensions and includes termination provisions that allow either party to end the contract in the event of a breach or certain insolvency-related circumstances.

The filing, signed by Chief Financial Officer Greg Endo on February 27, 2025, underscores Volcon’s continued efforts to expand its operational capabilities and strategic partnerships within the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Volcon’s 8K filing here.

Volcon Company Profile

Volcon, Inc develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications.