Zapp Electric Vehicles Group Limited (Nasdaq: ZAPP) (“Zapp EV” or the “Company”), owner of the British electric vehicle brand “Zapp” with a mission to revolutionize personal urban mobility, announced today that it has entered into a share purchase agreement (“SEPA”) with an affiliate of Yorkville Advisors Global, LP (the “Investor”). Zapp EV will primarily use the proceeds from the transaction to initiate production and commercial launch of the i300, the brand’s high-performance electric city motorcycle. The company expects to make the first deliveries of the i300 in Europe in the coming months, followed by the commercial launch of the i300 in Asian markets by the end of 2024.
Under the SEPA, the Investor has agreed to advance $1.5 million to Zapp in two installments, once certain conditions precedent are 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 a registration statement with the SEC registering the resale of shares issued under the SEPA.
Subsequently, subject to certain limitations, Zapp EV will have the right, but not the obligation, at its sole discretion, to issue and sell to the Investor up to an additional $8.5 million of its ordinary shares, based on the Company’s financing needs and the price of the shares during the three-year period following the effectiveness of an applicable SEC registration statement.
