Green Automotive Company ( OTC:GACR), catering to the electric vehicle business, announced that it has entered into a $3 million common stock purchase agreement with Kodiak Capital Group, LLC, a Newport Beach-based institutional investor. The Company has agreed to file a registration statement with the U.S. Securities & Exchange Commission (“SEC”) covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement.
After the SEC has declared the registration statement related to the transaction effective, the Company has the right at its sole discretion over a period of one year to sell up $3 million of its common stock to Kodiak under the terms set forth in the agreement. Proceeds from this transaction will be used to fund the company’s business development and for general corporate purposes.
“This is a great step forward for GACR,” commented Darren West, CFO and a Member of the Board of Directors of GACR. “ Kodiak is an excellent partner for us with a great track record and a long-term commitment to our industry. This transaction offers the Company a very cost efficient and readily available form of financing. The $3 million available under the agreement is ample funding for our immediate expansion requirements, which we believe will take our business to the next level. This agreement strengthens our balance sheet allowing us to focus on advancing our technology development program, reinforcing our production capacity to fulfill our order book and launch the first American electric shuttle bus as well as pursuing strategic partnerships, and other long-term objectives.”
Under the terms of the agreement, there are no upper limits to the price that Kodiak may pay to purchase the Company’s common stock and this transaction in no way impedes or changes the Company’s strategic objectives. The Company plans to continue pursuing its stated corporate milestones of consolidating in the emerging Electric Vehicle sector and pursuing the optimal corporate partnerships for its technology development programs. The Kodiak financing commitment simply strengthens the Company’s balance sheet and makes available an additional source of funding. Under the terms of the agreement, Kodiak has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock.Colin Manners, Director of Kodiak, said, “We are very pleased to be entering into this agreement with GACR. Kodiak has been following the progression of the Company over several months and we are excited to add a local business to our thriving EV portfolio. We are very impressed by the Company’s business plan and management's ability to prepare and timely execute on their objectives.” Additional details regarding the financing are included in a Current Report on Form 8-K filed on March 18, 2013 by the Company with the Securities and Exchange Commission. About Green Automotive Company Green Automotive Company is a state-of-the-art niche vehicle design, engineering, manufacturing, and sales company, driving innovation in the use of cutting edge zero and low emission technologies. Green Automotive Company possesses a unique portfolio of synergistic and innovative businesses that are active in 3 main market segments: Advanced vehicle technology development, engineering & design with a focus on zero and low emission solutions; Manufacturing and customization of vehicles for niche markets with the potential to be converted into low emission or electric vehicles and Distribution of sustainable transport solutions including a comprehensive after sales support program maximizing the life time value of all vehicles. Our 3 main divisions servicing these 3 segments are Liberty Electric Cars Ltd, Newport Coachworks Inc and GoinGreen Ltd. Green Automotive Company shares are traded on the OTC QB under the symbol "GACR". For further info, visit www.thegreenautomotivecompany.com. About Kodiak Capital Group, LLC Kodiak is an institutional investor headquartered in Newport Beach, CA. Kodiak makes private investments in public and private entities utilizing proprietary equity and debt instruments. These investments provide long-term strategic capital offering companies certainty, flexibility and consistency. Kodiak's investments are in a wide range of industries emphasizing consumer products, life sciences, natural resources, and social media technology. For more information contact Colin Manners at 212-262-2600 or visit www.kodiak-capital.us. Safe Harbor Statement - This release includes forward-looking statements. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Green Automotive Company incorporates by reference its disclosure and financial statements posted on www.otcmarkets.com, and does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.