Zapp EV Secures Increased Commitment of up to $50 million to Accelerate Commercial Rollout of the i300 Electric Urban Motorcycle

Core Viewpoint - Zapp Electric Vehicles Group Limited has entered into a new standby equity purchase agreement with Yorkville Advisors Global, LP, increasing its financial support from $10 million to$50 million, which will facilitate the expansion of its commercial operations and the production of its i300 model in India [1][2][4]. Financial Agreement - The new standby equity purchase agreement (New SEPA) replaces the original agreement and allows Zapp to receive an initial advance of $4 million in three tranches, contingent upon meeting certain conditions [3]. - Zapp has the right to issue and sell up to an additional$46 million worth of ordinary shares over a three-year period, based on its funding needs and share price fluctuations [4]. Business Strategy - The CEO of Zapp emphasized the importance of two-wheelers for personal mobility in emerging markets, particularly in Asia, and highlighted the company's asset-light business model which allows for efficient capital deployment [5]. - Zapp aims to maximize shareholder value while launching the i300 in multiple countries, leveraging a direct-to-customer sales model for enhanced customer experience [6].