Zapp EV Secures Increased Commitment of up to $50 million to Accelerate Commercial Rollout of the i300 Electric Urban Motorcycle
July 12 2024 - 6:30AM
Zapp Electric Vehicles Group Limited (Nasdaq: ZAPP) (“Zapp EV” or
the “Company”), owner of “Zapp”, the British electric vehicle brand
on a mission to revolutionise personal urban mobility, today
announced it has entered into a new standby equity purchase
agreement (the “New SEPA”) with an affiliate of Yorkville Advisors
Global, LP (the “Investor”). With this increased support, Zapp has
secured additional financial resources that may be utilized as
needed to expand commercial operations to additional countries.
Initial proceeds from the transaction will also allow Zapp to start
production and the commercial rollout of i300 in India, following
the previously announced plan to appoint a new contract
manufacturing partner for sales of Zapp’s vehicles in the country.
Previously, in February 2024, Zapp EV and the
Investor entered into a standby equity purchase agreement (the
“Original SEPA”) for a commitment from the Investor to purchase up
to $10 million worth of the Company’s ordinary shares. The Original
SEPA will be replaced by the New SEPA with a revised commitment of
up to $50 million.
Per the New SEPA, the Investor has agreed to
advance $4.0 million to Zapp in three tranches once conditions
precedent have been met, including the filing and effectiveness of
an SEC registration statement registering the resale of shares
issuable under the New SEPA.
Thereafter, subject to certain conditions and
limitations, Zapp EV will have the right, but not the obligation,
in its sole discretion, to issue and sell to the Investor up to a
further $46 million worth of its ordinary shares, based on the
Company’s funding requirements and evolving share price during the
three-year period following the effective date of the Original
SEPA.
Swin Chatsuwan, Founder and Chief
Executive Officer of Zapp EV, said: “Two-wheelers are
critical for personal mobility in emerging markets, and these
vehicles lend themselves exceptionally well to electrification.
Zapp’s solution is designed to thrive with urban densification on
the rise, particularly in Asia. This increased investor support
provides the financial resources to accelerate the development of
our business while retaining significant discretion as to the
timing and amount of share issuances by Zapp, as needed. With our
asset-light business model and modest funding requirements compared
to other sectors, Zapp aims to deploy capital as efficiently as
possible to maximize value for shareholders and launch sales of the
i300 in an expanding set of countries.”
About Zapp EV
Zapp EV (Nasdaq: ZAPP) and its operating
subsidiaries are run by a team of experts from the mobility
industry, on a mission to redefine the electric two-wheeler
segment. Zapp's debut product, the i300, is an urban electric
high-performance two-wheeler capable of traditional motorcycle
levels of performance in a step-through format, combining ease of
use with exhilaration and fun. The i300 is the first in a suite of
high-performance electric two-wheelers that Zapp plans to bring to
market. Zapp will offer a high-quality direct-to-customer
experience known as DSDTC (drop-ship-direct-to-customer). Customers
ordering the i300 online will have their bikes conveniently
delivered to their home by authorised “Zappers,” who will provide
at-home inspection, service and support throughout the vehicle
ownership lifecycle. Zapp is a registered trademark of Zapp
Electric Vehicles Limited in the United Kingdom and other
countries. For more information, visit www.zappev.com.
Zapp Investor Relations Contact:
Mark KobalHead of Investor Relationsir@zappev.com
Zapp Media Relations Contact:pr@zappev.com
No Offer or Solicitation
This press release is for informational purposes
only and does not constitute an offer to sell, a solicitation of an
offer to buy, or a recommendation to purchase any security of Zapp
EV or any of its respective affiliates. No such offering of
securities shall be made except by means of a prospectus meeting
the requirements of section 10 of the Securities Act, or an
exemption therefrom. The contents of this press release have not
been reviewed by any regulatory authority in any jurisdiction.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (or the “Exchange
Act”). These forward-looking statements generally are identified by
the words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “future,” “budget,” “opportunity,” “plan,”
“may,” “should,” “will,” “would,” “will be,” “will continue,” “will
likely result,” and similar expressions. Forward-looking statements
are not historical facts but rather are predictions, projections
and other statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events
and results to differ materially from those expressed or implied by
the forward-looking statements in this document, including but not
limited to various general and specific risks and uncertainties
associated with the Company's business and finances in general.
Readers should review and carefully consider the
risks and uncertainties described in the “Risk Factors” section of
Zapp EV's annual report on Form 20-F (File No. 001-41693), which is
incorporated herein by reference, and other documents the Company
files with or furnishes to the U.S. Securities and Exchange
Commission from time to time. These filings identify and address
important risks and uncertainties that could cause actual events
and results to differ materially from those expressed or implied by
the forward-looking statements herein. The forward-looking
statements herein represent the Company’s views as of the date of
this document. Subsequent events and developments may cause these
views to change. Readers are cautioned not to place undue reliance
on the forward-looking statements herein, all of which are
qualified by the foregoing cautionary statements. Except as
required by applicable law, Zapp assumes no obligation and does not
intend to update or revise the forward-looking statements herein,
whether as a result of new information, future events, or
otherwise. Zapp does not give any assurance that it will achieve
its expectations. The inclusion of any statement in this document
does not constitute an admission by Zapp or any other person that
the events or circumstances described in any such statements are
material.