Zapp EV Secures Up to $10M Equity Line

TL;DR

Zapp EV just inked a $10M equity deal with YA II PN, LTD for potential share sales over 3 years.

AI Summary

On July 11, 2024, Zapp Electric Vehicles Group Limited (Zapp EV) entered into a new Standby Equity Purchase Agreement (New SEPA) with YA II PN, LTD. This agreement allows Zapp EV to potentially sell up to $10 million of its ordinary shares to the investor over a period of 36 months, subject to certain conditions.

Why It Matters

This new equity line provides Zapp EV with potential access to capital, which could be crucial for funding its operations and growth initiatives in the electric vehicle market.

Risk Assessment

Risk Level: medium — Standby Equity Purchase Agreements can be dilutive to existing shareholders and may indicate the company's need for capital, potentially signaling financial pressure.

Key Numbers

• $10.0M — Standby Equity Purchase Agreement Value (Maximum amount Zapp EV can raise over 36 months.)

Key Players & Entities

• Zapp Electric Vehicles Group Limited (company) — Registrant
• Zapp EV (company) — Abbreviation for Zapp Electric Vehicles Group Limited
• YA II PN, LTD (company) — Investor in the SEPA
• July 11, 2024 (date) — Date of SEPA agreement
• $10 million (dollar_amount) — Maximum potential value of the SEPA
• 36 months (duration) — Term of the SEPA

FAQ

Key Financial Figures

• $50 million — the right to sell to the Investor up to $50 million (“the Commitment Amount”)
• $4.0 million — or has agreed to advance to the Company $4.0 million in three tranches (the “Pre-Paid
• $1.0 million — le Notes”). The first advance of $1.0 million was disbursed upon execution of the agr
• $2.0 million — able under the New SEPA. The balance of $2.0 million will be disbursed within two trading da

Filing Documents

• new_sepa_6-k_jul_24.htm (6-K) — 31KB
• zapp-ex99_1.htm (EX-99.1) — 582KB
• zapp-ex99_2.htm (EX-99.2) — 108KB
• zapp-ex99_3.htm (EX-99.3) — 15KB
• img156110496_0.jpg (GRAPHIC) — 2KB
• img156110496_1.jpg (GRAPHIC) — 2KB
• 0000950170-24-083760.txt ( ) — 743KB

Forward-Looking Statements

Forward-Looking Statements This Form 6-K contains forward-looking statements that involve risks and uncertainties. Such risks and uncertainties include without limitation the Company’s ability to regain and maintain compliance with Nasdaq’s rules for continued listing of its shares, the concomitant risk that its shares may be delisted by Nasdaq, market and business conditions, and other risks detailed from time to time in the Company’s periodic reports and other filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on forward-looking statements, which are based on the Company’s current expectations and assumptions and speak only as of the date of this Form 6-K. The Company does not intend to revise or update any forward-looking statements in this Form 6-K as a result of new information, future events or otherwise, except as required by law. EXHIBIT INDEX Exhibit Description of Exhibit 99.1 Standby Equity Purchase Agreement, dated July 11, 2024, between Zapp Electric Vehicles Group Limited and YA II PN, Ltd. 99.2 Registration Rights Agreement, dated July 11, 2024, between Zapp Electric Vehicles Group Limited and YA II PN, Ltd. 99.3 Press release issued by Zapp Electric Vehicles Group Limited, dated July 12, 2024.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ZAPP ELECTRIC VEHICLES GROUP LIMITED Date: July 16, 2024 By: /s/ Swin Chatsuwan Name: Swin Chatsuwan Title: Chief Executive Officer

View Full Filing

View this 6-K filing on SEC EDGAR