Gold Sino Assets Limited to Invest $50 Million into Gogoro to Continue Expanding its Leadership in Smart Urban Mobility

Rhea-AI Summary

Gogoro Inc. (Nasdaq: GGR), a leader in two-wheel battery swapping, announced a $50 million investment from Gold Sino Assets to expand its smart urban mobility solutions.

Since its 2015 launch, Gogoro has achieved over 570 million battery swaps and currently facilitates more than 400,000 daily swaps.

This investment will aid Gogoro's growth in Taiwan and international markets, supporting continued innovation and customer value.

The agreement includes the issuance of 32,516,095 ordinary shares at $1.5377 per share and a warrant to purchase 10,838,698 shares at $1.6915 per share.

The deal is expected to close within days.

Positive

• Gogoro received a $50 million investment from Gold Sino.
• Over 570 million battery swaps achieved since 2015.
• More than 400,000 daily battery swaps currently.
• The investment supports Gogoro's growth in Taiwan and international markets.
• Issuance of 32,516,095 ordinary shares at $1.5377 per share.
• Warrant to purchase 10,838,698 shares at $1.6915 per share.

Negative

• Potential shareholder dilution due to the issuance of new shares.
• The investment terms suggest a low per-share price, potentially indicating undervaluation.

Financial Analyst

The $50 million investment from Gold Sino into Gogoro is a substantial financial event for the company. This capital infusion is set to promote Gogoro’s continued leadership in the urban battery-swapping market and its international expansion. The transaction includes the issuance of 32,516,095 ordinary shares at a price of approximately $1.5377 per share, along with a warrant to purchase an additional 10,838,698 shares at $1.6915 per share.

Short-Term View: This investment will provide Gogoro with immediate liquidity, improving its cash flow and enabling timely execution of its expansion plans. As an investor, it's important to note that additional shares being issued might cause some short-term dilution of existing shares.

Long-Term View: The capital is earmarked for growth and development, particularly for expanding markets outside Taiwan. Successful deployment of these funds could see Gogoro solidifying its market lead and potentially increasing its market share on a global scale, which might result in long-term stock appreciation.

Important Considerations: It’s important to be aware of the financial health and profitability metrics of Gogoro. The fact that the company’s largest shareholder, Gold Sino, is doubling down on their investment can be seen as a vote of confidence in the company’s strategic direction and future prospects.

Tech Expert

Gogoro's focus on battery-swapping technology for two-wheelers presents a highly innovative approach to urban mobility. Battery swapping, as opposed to traditional charging, offers an efficient and quick solution for electric vehicle users, reducing downtime and enhancing convenience. Gogoro’s ecosystem already facilitates 400,000 daily battery swaps and has accumulated over 570 million total battery swaps since its inception in 2015.

Technology Insights: The large-scale adoption of Gogoro’s battery-swapping technology indicates strong market acceptance and operational reliability. Technological advancements in battery management and swap station infrastructure will be critical in maintaining their edge. Investors should watch for any new product developments or strategic partnerships in tech that could further entrench Gogoro’s market position.

Challenges: Competing technologies or alternative energy solutions could pose a threat. It’s also important to monitor regulatory changes in international markets that could impact the adoption of battery-swapping systems.

With more than 400,000 daily battery swaps and more than 570 million total battery swaps since it launched in 2015, Gogoro has been recognized as a global leader in two-wheel battery swapping.

TAIPEI, Taiwan, June 3, 2024 /PRNewswire/ -- Gogoro Inc. (Nasdaq: GGR), a global technology leader in battery-swapping ecosystems that enable sustainable mobility solutions for cities, today announced an agreement for $50 million investment from Gold Sino Assets Limited ("Gold Sino") to continue its leadership in urban battery swapping ecosystems and smart mobility innovation to accelerate the shift to sustainable urban transportation.

"With the success of its revolutionary battery swapping ecosystem, Gogoro continues to lead the two-wheel transformation that is shaping cities of the future to be smart, sustainable and accessible. Gogoro is delivering on its vision," said Dr. Samuel Yin of Gold Sino and the chairman of Ruentex Group. "As Gogoro continues growing its lead in Taiwan and in its expansion markets, it is important that it continues to have the resources and flexibility to operate efficiently and continue to deliver cutting-edge innovation, unparalleled customer experience and great value to customers."

TRANSACTION DETAILS

The share and warrant purchase agreement with Gold Sino, Gogoro's largest shareholder, pursuant to which it will issue to Gold Sino (i) 32,516,095 ordinary shares of Gogoro, par value US$0.0001 per share, for an aggregate purchase price of US$50,000,000, reflecting a per share purchase price of approximately US$1.5377 and (ii) a warrant to purchase 10,838,698 ordinary shares of Gogoro with an exercise price of US$1.6915 per share (subject to certain adjustments as set forth therein).  The closing of the transactions is expected to occur within the next few days. The funding will be used to continue Gogoro's growth and development in Taiwan and international expansion markets.

"Our partnership with Dr. Yin, Gold Sino and Ruentex Group goes back to Gogoro's founding. Dr. Yin has been our greatest advocate and shares a strong vision for how smart mobility and clean energy can create healthier and more vibrant cities," said Horace Luke, founder and CEO of Gogoro. "This investment is a strong testament to Gogoro's business model and vision for growing our business globally."

ABOUT GOGORO

Founded in 2011 to rethink urban energy and inspire the world to move through cities in smarter and more sustainable ways, Gogoro leverages the power of innovation to change the way urban energy is distributed and consumed. Recognized by Fast Company as "Asia-Pacific's Most Innovative Company of 2024"; Frost & Sullivan as the "2023 Global Company of the Year for battery swapping for electric two-wheel vehicles"; and, MIT Technology Review as one of "15 Climate Tech Companies to Watch" in 2023, Gogoro's battery swapping and vehicle platforms offer a smart, proven, and sustainable long-term ecosystem for delivering a new approach to urban mobility. Gogoro has quickly become an innovation leader in vehicle design and electric propulsion, smart battery design, battery swapping, and advanced cloud services that utilize artificial intelligence to manage battery charging and availability. The challenge is massive, but the opportunity to disrupt the status quo, establish new standards, and achieve new levels of sustainable transportation growth in densely populated cities is even greater. For more information, visit www.gogoro.com/news and follow Gogoro on Twitter: @wearegogoro.

Forward Looking Statements

This communication contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements generally relate to future events or Gogoro's future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Gogoro's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this communication include, but are not limited to, the potential closing of issuance and sale of ordinary shares and warrant to Gold Sino Assets Limited, the timing of such closing, the potential use of the proceeds, and the growth prospects of Gogoro. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Gogoro's control, which may cause Gogoro's actual results, performance or achievements to differ materially from those in the forward-looking statements.  The forward looking statements contained in this communication are also subject to other risks and uncertainties, including those more fully described in Gogoro's filings with the Securities and Exchange Commission ("SEC"), including in Gogoro's Form 20-F for the year ended December 31, 2023, which was filed on March 29, 2024 and in its subsequent filings with the SEC, copies of which are available on our website and on the SEC's website at www.sec.gov. All information contained in this communication is based on information available to Gogoro as of the date hereof, and Gogoro disclaims any obligation to update any such information, except as required by law.

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SOURCE Gogoro Inc

FAQ

What is the recent investment in Gogoro (GGR)?

Gold Sino Assets invested $50 million in Gogoro to support expansion in smart urban mobility solutions.

How many daily battery swaps does Gogoro (GGR) currently facilitate?

Gogoro currently facilitates over 400,000 daily battery swaps.

How many total battery swaps has Gogoro (GGR) achieved since its launch?

Gogoro has achieved over 570 million battery swaps since its launch in 2015.

What are the details of the share issuance in Gogoro (GGR)'s recent investment?

Gogoro will issue 32,516,095 ordinary shares at $1.5377 per share and a warrant to purchase 10,838,698 shares at $1.6915 per share.

What is the purpose of the $50 million investment in Gogoro (GGR)?

The investment will support Gogoro's growth and innovation in Taiwan and international markets.

When is the closing of Gogoro (GGR)'s recent investment deal expected?

The closing of the investment deal is expected to occur within the next few days.