Zapworld.Com Announces 5-Year Growth PlanJuly 12, 2000 by Jeff Shepard
Zapworld.Com (Sebastopol, CA) announced at its annual shareholders meeting on June 24, 2000, details for the basis of the company's growth plan over the next five years and announced $3.0 million in new preferred stock financing.Zap's newly appointed president, John Dabels, outlined the company's growth plan for the future, which would combine a strategy of distribution and acquisition while focusing on a program of "Five Ps", which include production, product, (market) penetration, personnel and profitability."The five Ps provide the foundation to begin the transformation of Zap into a light electric transportation company with the same standards of measurement as the auto industry," said Dabels, who spent 25 years working for General Motors.During the meeting, Zap explained that the $3.0 million proceeds of the preferred stock sale are being held in escrow pending the filing of pertinent documents with the Secretary of State for the State of California. The shareholders voted to approve the new preferred stock and to accept the terms of the announced preferred stock sale, including granting options to the investor clients of investment banker Union Atlantic. If all options are exercised, the company could receive up to $12.0 million of capital, depending on the trading price of the company's stock at the time of exercise. This infusion of capital would result in the new investors owning slightly more than 20 percent of the company's equity, but depending on the price of company's stock.Other highlights of the meeting included a presentation from representatives of recently acquired Aquatic Propulsion Technologies (APT, Pompano Beach, FL), makers of an electric sea scooter. After the meeting, Zap conducted tours of its manufacturing facility in Sebastopol, where the company said that, due to increasing demand, it had increased production for its ZAPPYs from 50 to 125 per day.