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Why Is Zapp Electric Vehicles (ZAPP) Stock Up 31% Today?
ZAPPZapp(ZAPP) Investor Place·2024-07-12 15:41

Core Viewpoint - Zapp Electric Vehicles has secured a commitment for up to 50million,leadingtoasignificantincreaseinitsstockpriceandtradingvolume[2][4].FundingDetails−ThefundingwillbesourcedfromsellingsharesofZAPPstocktoanaffiliateofYorkvilleAdvisorsGlobal,LP,withanadditional50 million, leading to a significant increase in its stock price and trading volume [2][4]. Funding Details - The funding will be sourced from selling shares of ZAPP stock to an affiliate of Yorkville Advisors Global, LP, with an additional 4 million being advanced through three tranches tied to a standby equity purchase agreement [3][5]. - This new agreement replaces an earlier $10 million agreement signed in February 2024, providing the company with greater financial flexibility [5]. Stock Performance - ZAPP stock has experienced a notable increase of 30.5% as of Friday morning, with trading volume exceeding 14 million shares, significantly higher than its daily average of approximately 7.4 million shares [4][7]. Business Strategy - The company aims to utilize the funding to accelerate business development while maintaining discretion over share issuances, focusing on an asset-light business model and efficient capital deployment to maximize shareholder value [4][6].