LOS ANGELES, July 12, 2021 (GLOBE NEWSWIRE) – EVmo, Inc. (OTC: YAYO), a leading vehicle provider for the ridesharing, ridesharing and delivery economy industry, today announced the closing of a $ 15 million debt financing with Energy Impact Partners, EIP, based in New York.
Highlights of the offer:
- $ 15 million commitment to EVmo by Energy Impact Partners LP
- Immediate initial purchase and deployment of vehicles; strive to deploy 10,000 vehicles over the next 18-24 months
- Strategic expansion into the seven existing North American markets and planned expansions beyond these markets
- Plans to add electric vehicles (EVs) to the platform, bringing the overall composition of the electric vehicle fleet to over 20%
- EIP integrates ESG themes into its investment analyzes and decision-making processes
- EIP invests in companies that directly reduce carbon emissions
“We believe our strategic alliance with Energy Impact Partners will facilitate EVmo’s growth in key US markets. Up to 500 fleet units will be added to our platform and deployed immediately, including the addition of more vehicles. electric vehicles, thus improving our mix of electric vehicles to 20%, with the objective of eventually being a fully electric company. With additional funding, we will strive to deploy 10,000 vehicles over a period of 18 to 24 months “, commented Stephen Sanchez, CEO of EVmo.
At the margin, for every $ 10 million of debt and / or equity raised, the company should purchase approximately 4,000 vehicles with a mix of 85% and 15% van. This should translate to roughly $ 80 million in annual revenue for every $ 10 million of capital raised at the margin. The Company expects to achieve an EBITDA margin of 25%.
Terren Peizer, Executive Chairman of the Board of Directors of EVmo, added: “This financing is truly remarkable because it was carried out in the absence of a capital increase. We have consistently said that we will rely on debt and other non-dilutive funding in addition to equity. This is a high EBITDA model that supports debt financing which we believe will generate proportionately higher returns for shareholders. “
Harry Giovani, CEO and Managing Partner of EIP Credit Strategies, “As part of Energy Impact Partners, which focuses on mobility as a key sector of the energy transition, we are delighted to announce our investment and our partnership with EVmo. With our funding, CEO Stephen Sanchez working with the EVmo team, we will be able to further expand the company’s electric fleet, providing a vital and transformative product to the electric gig economy. “
Tal Sheynfeld, EIP Credit Strategies Partner, “With the growing demand in the rental car arena, Energy Impact Partners sees an incredible opportunity with EVmo to provide increased access to electric vehicles to workers in concert. We believe our funding will accelerate EVmo to become a leader in the electric car rental market. “
“I am extremely proud of our progress up to this point in 2021 and fully expect continued and effective growth over the coming months. We have built a strong operations team and amazing partners. This combination is unmatched in the area of carpooling and logistics, ”concluded Sanchez.
ThinkEquity, a division of Fordham Financial Management, Inc., acted as the placement agent for this debt financing.
EVmo rents vehicles to customers who contribute to the concert economy. This includes carpooling, carsharing and e-commerce platforms. The type of vehicles on the Company’s platform range from electric passenger vehicles to well-equipped vans that are used by e-commerce delivery providers. We believe the company’s technology and expertise enables a frictionless rental experience, from pickup to drop-off. Focused on executing an environmentally responsible growth strategy, EVmo adds electric vehicles to current and future North American markets, and 14% of its managed fleet was electric vehicles at the end of the first quarter 2021.
EVmo has leveraged its partnership with the best OEMs in the electric vehicle category to build a fleet of electric vehicles at attractive rental terms, receiving competitive pricing and delivery commitments from multiple OEMs. These electric vehicle growth plans are fully aligned with the two largest ridesharing platforms in the United States. EVmo has attractive repurchase agreements and options to purchase vehicles at the end of the financing period and has always been able to sell vehicles at a gain given their high residual value compared to the attractive initial purchase price (discount at MSRP).
According to Global Market Insights, the North America rideshare market was $ 4.5 billion in 2019 and is expected to grow at a CAGR of 6.5% through 2026.
About EVmo, Inc.
EVmo, Inc. bridges the gap between ride-sharing and ‘last mile’ delivery drivers who need adaptive vehicles and the rideshare, delivery and logistics businesses that rely on the attraction and driver loyalty. EVmo, Inc. is a leading provider of rental vehicles to drivers and delivery companies in this ever-expanding gig economy. The company supports drivers in the upper and lower economic categories with innovative policies and programs.
The Company provides an online ridesharing vehicle reservation platform to serve the ridesharing and delivery economy, which includes both our owned and maintained passenger and freight delivery fleet and third party fleets. We also provide fleet management services with our cutting edge technology platform to fleet providers. EVmo supplies cargo storage vans to the last mile delivery and logistics industry.
The Company provides SEC documents, investor events, press releases and press releases on our financial results in the Investor Relations section of our website (www.evmo.com).
Disclaimer regarding forward-looking statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections regarding future events and financial trends that the company believes could affect its financial condition, results of operations, business strategy. and his financial needs. Investors may identify these forward-looking statements by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “intend” ” plan ”,“ believe ”,“ potential ”,“ continue ”,“ is / are likely to ”or other similar expressions. The company makes no commitment to update any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be correct, and the company cautions investors that actual results may differ materially from anticipated results.
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Source: EVmo, Inc.