Zapp Electric Vehicles Group Limited, the British electric vehicle brand dedicated to transforming urban mobility, has recently entered into a standby equity purchase agreement (SEPA) with an affiliate of Yorkville Advisors Global, LP (the Investor). The agreement aims to provide financial support for the production and launch of the i300, Zapp’s high-performance electric urban motorcycle.
Under the SEPA, the Investor will initially advance $1.5 million to Zapp in two tranches, subject to certain conditions such as the filing of the Company’s Annual Report on Form 20-F for the fiscal year ended September 30, 2023, and the effectiveness of an SEC registration statement registering the resale of shares issuable under the SEPA.
Following this initial investment, Zapp EV retains the discretion to issue and sell up to an additional $8.5 million worth of its ordinary shares to the Investor over a three-year period, based on funding needs and share price evolution after the SEC registration statement’s effectiveness.
Swin Chatsuwan, Founder and CEO of Zapp EV, expressed confidence in the company’s product and welcomed the support from the Investor, stating that it provides the financial resources necessary for the i300’s anticipated rollout this year.
Chatsuwan highlighted the i300’s attributes, including its award-winning design, high-performance specifications, and affordability, as key factors driving consumer appeal. The company aims for positive gross margins from the outset, leveraging its balance sheet light business model and contract manufacturing capabilities to achieve its goals efficiently.
Zapp anticipates significant growth in electric two-wheeler sales globally, particularly in emerging markets. Notably, the i300’s rollout won’t face obstacles related to charging infrastructure, as its lightweight portable batteries can be conveniently charged at any wall socket, eliminating the need for dedicated charging stations.
Furthermore, Zapp plans to rapidly scale its business through an asset-light model, utilizing contract manufacturing and receivables financing arrangements to facilitate production and expansion, with support from the Export Import Bank of Thailand.
In summary, Zapp EV is poised to capitalize on the burgeoning market for electric vehicles, with the i300 poised to make a significant impact in Europe and Asian markets in the coming months.
