EVCARCO Inc announced today has signed a USD10m drawdown equity financing agreement with Boston based Auctus Private Equity Fund, LLC (Auctus).
Mack Sanders, CEO of EVCARCO, says: "We are pleased to have signed this funding agreement with Auctus, which provides the Company with future flexibility and will help us with dealership acquisitions, operations and general corporate use."
Nickolay Frolov, CFO of EVCARCO, says: "The Auctus Agreement requires the company to file for fewer shares and should have a gradual effect on our share structure due to the 36 month term. The company is also looking at several smaller debt financing packages from other firms and financiers to help leverage the company’s need for funding and growth."
There are no upper limits to the price Auctus may pay to purchase EVCARCO’s common stock and the purchase price of the shares related to the USD10 million of future funding will be based on 93% of the lowest trade (closing) price during the pricing period as outlined in the Agreement. The company will control the timing and amount of any sales of shares to Auctus. There are no financial or business covenants, restrictions on future funding, rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. The agreement may be terminated by the company at any time, at its sole discretion, without any cost or penalty.