Zapp Electric Vehicles (NASDAQ:ZAPP) stock is rallying higher on Friday after the electric vehicle (EV) company secured a commitment for up to $50 million.
This is an update to a standby equity purchase agreement that was signed in February 2024 for $10 million. With this change, the company now has access to up to $50 million. That replaces the original $10 million agreement.
Zapp Electric Vehicles notes that this money will come from it selling shares of ZAPP stock to an affiliate of Yorkville Advisors Global, LP. Additionally, the lender has agreed to advance $4 million to the company through three tranches tied to the standby equity purchase agreement.
Zapp Electric Vehicles founder and CEO Swin Chatsuwan said the following about the funding.
“This increased investor support provides the financial resources to accelerate the development of our business while retaining significant discretion as to the timing and amount of share issuances by Zapp, as needed. With our asset-light business model and modest funding requirements compared to other sectors, Zapp aims to deploy capital as efficiently as possible to maximize value for shareholders and launch sales of the i300 in an expanding set of countries.”
ZAPP Stock Movement Today
With all of this news comes increased interest and heavy trading of ZAPP shares. That has more than 14 million units changing hands as of this writing. This is well above its daily average trading volume of about 7.4 million shares.
ZAPP stock is up 30.5% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
