5th Mar 2019 15:59
LONDON (Alliance News) - Good Energy Group PLC on Tuesday said it will pay up to GBP1.8 million for a majority equity investment in the Zap-Map electric vehicle app.
Zap-Map allows electric vehicle drivers to find charge points. Good Energy, a renewable energy investor, will ultimately own 50.1% of Zap-Map via an up to GBP1.8 million investment in Zap-Map's parent company, Next Green Car Ltd.
The total consideration is USD1.1 million, rising to a limit of GBP1.8 million including deferred consideration. Initially, Good Energy will pay GBP280,000 in cash for a 12.9% stake, with a further GBP800,000 investment to occur via secured convertible notes.
Good Energy is entitled to exercise the convertible loan until the end of 2021. If its is not exercised by Good Energy then it becomes repayable by Next Green Car.
There is a deferred consideration that is payable in July 2020 if certain product milestones are met and stretching financial milestone targets in 2021, with the maximum deferred consideration set at GBP720,000.
"The deal will help fund and accelerate Zap-Map's product development as it realises the full potential of its digital [electric vehicle] charging services. The two South West England teams will collaborate on broader applications for the proprietary platform, while seeking to maintain the exponential growth of its [electric vehicle] user base," said Good Energy Founder & Chief Executive Juliet Davenport.
Shares in Good Energy were untraded at 97.00 pence on Tuesday.
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