ZAP and Fusion Capital Mutually Terminate Financing Agreement
SANTA ROSA, Calif., Feb 25, 2005 /PRNewswire-FirstCall via COMTEX/ --
Automotive technology pioneer ZAP (OTC Bulletin Board: ZAPZ) today announced
that it has mutually agreed with Fusion Capital Fund II, LLC to terminate their
existing $24 million common stock purchase agreement.
"We entered into this agreement with Fusion in the middle of 2004," said Steve
Schneider, ZAP's CEO. "In a short amount of time a lot has changed at ZAP. We
would like to take this opportunity to thank Fusion for their help and support.
The Company is in negotiations for debt financing that would be better for
shareholders long-term without the dilution inherent in any equity transaction.
We will continue to dialogue with Fusion and evaluate future financing
opportunities with them."
Under the agreement, Fusion had purchased $500,000 of ZAP common stock and
committed to purchase up to an additional $24 million of common stock. In
connection with the termination, the company repurchased the $500,000 of common
stock originally purchased by Fusion Capital. A more detailed description of
this mutual termination is set forth in ZAP's report on Form 8-K, recently filed
with the SEC.
About ZAP
ZAP has been a leader in clean transportation technologies since 1994,
delivering more than 90,000 vehicles to customers in more than 75 countries. A
public company, ZAP is traded on the Over-the-Counter stock exchange under the
symbol ZAPZ. The company offers a variety of advanced technology vehicles,
including electric cars, bicycles, scooters, motorbikes, underwater scooters and
advanced battery devices. For more information, visit zapworld.com or
call 707-525-8658.
About Fusion Capital
Fusion Capital Fund II, LLC is a broad based investment fund, based in Chicago,
Illinois. Fusion Capital makes a wide range of investments ranging from special
situation financing to a long-term strategic capital.
SOURCE ZAP
CONTACT: media, Alex Campbell, ext. 241, or acampbell@zapworld.com, or investors, Steven Kim,
ext. 298, or skim@zapworld.com, both of ZAP, +1-707-525-8658
URL: prnewswire.com
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