Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP) shares are trading higher on Friday in the premarket session.
The company announced it has entered into a new standby equity purchase agreement with an affiliate of Yorkville Advisors Global.
With this augmented backing, Zapp has secured extra financial resources that can be deployed as required to expand commercial operations into more countries.
The initial funds from the transaction will enable Zapp to initiate production and the commercial launch of the i300 in India, in line with their previously disclosed strategy to appoint a new contract manufacturing partner for vehicle sales in the region.
Also Read: Zapp Electric Vehicles Shares Are Off The Roof: What You Need To Know
In February 2024, Zapp EV and the Investor entered an original standby equity purchase agreement (SEPA) for up to $10 million in the company's ordinary shares.
This agreement has been superseded by a new SEPA, increasing the commitment to up to $50 million.
Under the terms of the New SEPA, the Investor will provide Zapp with $4.0 million in three installments, contingent upon fulfilling conditions such as filing and SEC approval of a registration statement for the resale of shares issued under the agreement.
"This increased investor support provides the financial resources to accelerate the development of our business while retaining significant discretion as to the timing and amount of share issuances by Zapp, as needed," said Swin Chatsuwan, Founder and Chief Executive Officer of Zapp EV.
Price Action: ZAPP shares are trading higher by 26.1% to $11.60 premarket at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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