Zapworld Signs Best-Efforts Underwriting AgreementMay 23, 2001 by Jeff Shepard
Zapworld.Com (ZAP, Sebastopol, CA) has signed a best-efforts underwriting agreement with Donner Corp. (Santa Ana, CA) for a public offering of preferred stock to raise up to $12 million.
Gary Starr, CEO of Zapworld, explained the reasons for the additional capital requirements, saying, “Over the last several days, we have disclosed our plans to transform ZAP from a company known for just one product, the ZAPPY electric scooter, into a company that markets and distributes a full-line of electric vehicle products. We are restructuring the company to focus on areas where ZAP can be a leader. We are moving manufacturing for our existing products to overseas contract manufacturers, several of our new products are coming to market by this summer, and we have announced plans to form a joint venture to develop new products. These plans call for more financing, but by aggressively moving forward we can seize on the opportunities that exist today for electric transportation.”