An investment of up to almost £8 million has triggered an announcement from the British manufacturer, Zapp EV, that it is set to begin production of the Zapp i300 electric scooter.
An initial investment of $1.5 million (£1.2 million) will be received by Zapp, it says, “in two tranches once conditions precedent have been met, including the filing of the Company's Annual Report on Form 20-F for the fiscal year ended September 30, 2023 and the filing and effectiveness of an SEC registration statement registering the resale of shares issuable under the SEPA (standby equity purchase agreement).”
$8.5 million (£7 million) of ordinary shares can be sold, at Zapp EV’s discretion, to the investor - which is an affiliate of Yorkville Advisors Global, LP - after the initial $1.5 million has been advanced to Zapp. This would take the total investment to $10 million, or around £8 million.
The money, Zapp says, will be used to begin the commercial production of its i300 electric scooter, which features a patented Z-shaped exoskeleton frame and is priced from £6,990.
Swin Chatsuwan, Founder and Chief Executive Officer of Zapp EV, said: "Our design and engineering teams have delivered an exceptional product. With this vote of confidence from a renowned investor, we have the financial resources for the expected rollout of i300s this year.
"Consumer appeal is a key differentiator in this space, and we think the i300's eight-time award winning design, high-performance specifications, and sustainability, all at an affordable price, give Zapp the key ingredients for success. We aim to achieve a positive gross margin from the start of an anticipated ramp-up in customer deliveries. Zapp needs very little capital by industry standards to achieve our goals due to our balance sheet light business model leveraging contract manufacturing.
“We look forward to the first i300 deliveries in Europe, receipt of European Community Whole Vehicle Type Approval now that all requisite vehicle tests have been successfully completed, and capitalising on this progress to expedite our commercial rollout across key Asian markets."
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