Kurta Law: Recovery Options for Zoomcar Investors

Kurta Law is interested in speaking with investors who have lost money by investing in Zoomcar Holding, Inc. (ZCAR). According to its website, Zoomcar is “a leading marketplace for car sharing focused in India.” 

Just recently, Zoomcar mailed a proxy package regarding its upcoming shareholder meeting scheduled for Thursday, September 26. The company is seeking to (1) re-elect Swatick Majumdar and John Clarke as directors; (2) approve a reverse stock split of the company’s common stock at a ratio of between 1:50 and1:150 in the board’s discretion; (3) approve the exercise of certain unregistered warrants called “Bridge Warrants” and the potential issuance of more than 20% of the company’s issued and outstanding Common Stock in connection with the exercise of the Bridge Warrants; (4) ratify the appointment of Grant Thornton Bharat LLP as Zoomcar’s independent registered public accounting firm. 

Investors may have also received correspondence from Aegis Capital, Zoomcar’s placement agent, and others in connection with this proxy vote.  

In or around November 2021, Zoomcar announced that it had raised $92 million through a private sale of shares to investors, led by SternAegis Ventures, an arm of Aegis Capital Corp. On October 13, 2022, Zoomcar entered into an Agreement and Plan of Merger and Reorganization with Innovative International Acquisition Corp., a blank check company incorporated in the Cayman Islands. On December 28, 2023, Zoomcar closed the merger with Innovative International Acquisition Corp. Shortly thereafter, the share price of Zoomcar began to plummet. By February 2024, it was trading at less than $2 per share. By March, the share price was below $1. 

In July 2024, investors may have received notice that some legal restrictions on their shares had been removed. However, by this time investors had seen the value of their shares plummet to less than $0.15 per share. 

Investors who purchased shares of Zoomcar may be entitled to compensation from Zoomcar, Aegis Capital Corp., or others. 

If you invested in Zoomcar and are interested in learning more about your right to a potential recovery, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.