For a company whose reputation such as it is has more often been made on the frequency of its press releases than the actual products it sells Zap has been relatively quiet of late. The last big news relating to the Santa Rosa, CA company was the collapse of plans for a venture to build a plant in Kentucky.
This week however, Zap claimed it received “up to $25 Million” in new funding. Watch out for that “up to” part. Venture capital firm Cathay Capital is reportedly putting in $5 million up front for 20 million shares of Zap common stock. An additional $10 million loan will be available if Zap meets certain unspecified conditions. Cathay also got warrants for up to 16 million shares at $0.50 per share, which puts the total amount at $23 million. What’s a couple of million between friends? The money will apparently fund long term contracts for production, which probably means Zap’s contract manufacturers in China want payment up front. No mention is made of the three wheeled Alias and the legendary Zap-X 640 hp CUV seems to have been consigned to the dustbin of history. Zap’s press release is after the jump.
ZAP Electric gets up to $25 million (give or take) in fresh funding originally appeared on Autoblog Green on Wed, 12 Aug 2009 09:57:00 EST. Please see our terms for use of feeds.