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ZAP Obtains
$425 Million Revolving Line of Credit to Import SMART Cars and
Other Fuel-Efficient Vehicles
SANTA ROSA,
Calif., September 20, 2005 — ZAP (PCX: ZP —
News), announced today that it has concluded an agreement for a
$425 million revolving financing facility with Surge Capital
II, LLC that could be used to import SMART cars and other advanced
transportation vehicles for its dealers.
This new facility
would give ZAP the ability to start fulfilling purchase orders it
has already received for SMART cars that will be modified to meet
United States environmental and safety standards using proprietary
conversion technology that has been licensed to ZAP. The facility
may also be used for the importation of other brands of
fuel-efficient vehicles from global manufacturers that would be
distributed through ZAP’s dealer network. The financing
facility has a term of one year, but may be extended upon agreement
by both parties. The financing is based on orders ZAP receives from
dealers who must be approved in advance by Surge Capital and is
secured by a first lien on substantially all of ZAP’s
assets.
ZAP, a publicly
traded company listed on the ArcaEx Exchange, is a pioneer in
providing advanced, fuel-efficient vehicles with proven and
reliable technology to American drivers and consumers. The company
recently announced the first deliveries of Smart Cars modified by
ZAP to dealers in eight states as well as the beginning of its
dealer service training and certification program.
“We are now
in a position to immediately and continuously purchase large
quantities of vehicles from qualified manufacturers and
distributors,” said Steven Schneider, CEO of ZAP. “This
transaction, which is the culmination of many months of
discussions, was a key element in executing our strategic plan, and
I am pleased to report that we have crossed this critical
hurdle.”
Surge Capital,
ZAP’s financing partner in this transaction, and its
affiliates are private investment funds headquartered in
Northbrook, Illinois. The firm specialize
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