ZAP Signs Agreement to Acquire Electric
SEBASTOPOL, Calif. (December 7, 1999) -- ZAPWORLD.COM (OTC BB:ZAPP) announced today that it has reached an agreement to acquire electric car manufacturer Global Electric Motorcars, LLC (GEM) of Fargo, ND.
Under the terms of the agreement, ZAP will acquire GEM for 4.3 million shares of ZAPWORLD.COM (ZAP) common stock. This will constitute approximately forty percent of the outstanding shares of ZAP on a fully diluted basis.
GEM is the world's largest manufacturer of Neighborhood Electric Vehicles (NEV). NEVs are a new class of low speed vehicles created by the Department of Transportation last year. NEVs must have a maximum speed of 25 miles per hour, and meet federal guidelines for safety.
According to Daniel Melgar of Coast Partners Securities of San Francisco, "This is a win-win! It allows GEM to become public quickly and gain quick access to capital markets to help fuel its growth needs; for ZAP shareholders it will make the combined company clearly the leader in low-speed, on-road electric transportation."
GEM projects that its 1999 sales will be approximately $12.5 million. ZAP projects that its 1999 sales will exceed $5 million.
ZAP CEO Gary Starr stated, "GEM will add greatly to our goal of putting practical non-polluting vehicles into the marketplace, while simultaneously adding to shareholder value. This combination of companies will allow us to build on each other's strengths, and allow our dealers to be able to profit from a full product line. Furthermore, current governmental incentives and mandates for electric vehicles provide a tremendous
opportunity for a company that offers a full line of electric vehicles."
According to GEM President Ken Montler, "The electric vehicle experience and passion of ZAP's management team will greatly assist GEM in its needs for the future. The synergies here are amazing. With our strong manufacturing base here in Fargo combined with ZAP's engineering and marketing prowess, we will accelerate our mutual companies vision into the next millennium," said Montler.
Note to Editors: To view and purchase any of ZAP's electric vehicles go to www.zapworld.com. read specs and view more on both the GEM and ZAP factories at:
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of the
Company's products, increased levels of competition for the Company, new
products and technological changes, the Company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from time to
time in the Company's periodic reports filed with the Securities and Exchange