GoIP to Acquire GetCharged, Inc. 

Rhea-AI Summary

GoIP Global Inc. (OTC PINK: GOIG) has completed the acquisition of GetCharged, Inc. for $17.5 million in convertible preferred shares. This move aims to establish a vast network of charging and parking solutions for micromobility devices like e-scooters and e-bikes. With the micromobility industry projected to reach up to $300 billion by 2030 in the U.S., GetCharged's infrastructure solutions promise operational cost savings and efficient service for cities. CEO Andrew Fox will join GoIP's leadership, which plans to leverage this acquisition to enhance shareholder value.

Positive

• Acquisition of GetCharged could potentially tap into the $300 billion micromobility market by 2030.
• GetCharged offers infrastructure solutions that address e-scooter clutter and reduce operational costs for micromobility companies.
• The backing of GoIP's institutional investors is expected to expedite GetCharged's growth.

Negative

• The $17.5 million acquisition in convertible preferred shares could lead to shareholder dilution.
• Integration challenges may arise as GetCharged joins GoIP's portfolio, impacting execution.

Building the Largest Global Network of Charging and Parking Solutions for Micromobility

New York, NY, Oct. 01, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire-- GoIP Global Inc. (OTC PINK: GOIG) announced today the acquisition of GetCharged, Inc., a privately-held transportation company focused on building the largest global network of charging and parking stations for micromobility devices, electric scooters, and e-bikes. 

Micromobility, defined as urban transport vehicles that are human-powered, electrically assisted, or electrically powered, has disrupted transportation. This relatively new form of transport is attracting a strong customer base at a rate more than double either car-sharing or ride-hailing, according to a recent study[1]. There are currently Micromobility operators in over 150 cities, and there are over 1 million scooters deployed. Micromobility is modeled at a 2030 market potential of roughly $200 to $300 billion in the United States, $100 billion to $150 billion in Europe, and $30 billion to $50 billion in China. GetCharged's solutions are designed to benefit cities, scooter operators, riders, and non-riders alike by providing a safe infrastructure that brings order to the chaotic nature of scooters discarded on sidewalks, lowers operational costs, and offers consumers fully charged vehicles. GetCharged is poised to bring the Micromobility industry to profitability more quickly, making scooter use a welcome urban transport alternative and supporting users with dependable and searchable pickup locations.

"We believe the backing of GoIP's institutional investors, the adjacency of GoIP's recently announced acquisitions, our future acquisitions, and GetCharged's vast growth potential, driven by its talented team, presents tremendous upside opportunity for all of our stakeholders. Our entire board and institutional investors are excited to devote the capital necessary to rapidly grow GetCharged's footprint in this fast-growing on-demand ride-sharing movement. Also, we see this acquisition as consistent with our desire to increase shareholder value constantly as we see the GetCharged charging and parking stations opportunity as similar to other infrastructure plays, such as the cell tower business," stated Kenneth Orr, Chairman of GoIP.

"We are excited to join GoIP's team and appreciate their passion for supporting the growth and driving returns of GetCharged's last-mile urban opportunity. Cities worldwide are increasingly focusing on green, socially distanced solutions to traffic congestion, and the rising use of e-bikes and scooters has to date created additional logistical challenges. GetCharged's offering seamlessly addresses and services this rapid growth in e-scooter use while solving this emerging market's challenges. GetCharged has developed a series of infrastructure solutions that elegantly addresses e-scooter clutter and additionally offers tremendous operating cost savings for micromobility ride-sharing companies, paving the way for cities wishing to advance their use of scooters," said Andrew Fox, CEO of GetCharged, Inc.

Upon transaction close, Andrew Fox will be appointed Chief Executive Officer and President and join its board of directors. GoIP, as previously disclosed, is changing its name to TransWorld Holdings, Inc. The acquisition's purchase price of $17.5 million will be paid in convertible preferred shares at a fixed conversion of 60 million shares post-split. The transaction is expected to close before October 15, 2020, subject to customary closing deliverables. 

About GetCharged, Inc.

Charge is a micromobility company dedicated to building the largest network of electric charging, storage, and service stations for e-bikes and e-scooters. The company's docking stations will be installed in privately-owned parking garages, lots, and spaces throughout major markets around the world, providing a convenient, safe, and cost-effective space to charge, store and service e-vehicles while reducing e-vehicle clutter on city streets and sidewalks. Charge has entered into numerous agreements with garage operators and property owners, securing a network of nearly 6,000 locations to install its docking stations. Charge also has a proprietary mobile application that interfaces with its docking stations and provide users with available locations as well as real-time e-vehicle availability of partnered rideshare platforms. For more information, please visit charge.us, and connect with the company on Twitter and LinkedIn

About GoIP Global/ TransWorld Holdings Inc.

GoIP is a holding company that connects consumers and business using transportation, infrastructure and technology. GoIP is in the process of changing its name to TransWorld Holdings, Inc. and has applied for a new symbol. 

Safe Harbor Statement

Information in this news release may contain statements about future expectations, plans, prospects or performance of GoIP Global, Inc. that constitute forward-looking statements for purposes of the safe harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. GoIP Global, Inc. cautions you that any forward-looking information provided by or on behalf of GoIP Global, Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. GoIP Global, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond GoIP Global, Inc.'s control. In addition to those discussed in GoIP Global, Inc.'s press releases, public filings, and statements by GoIP Global, Inc.'s management, including, but not limited to, GoIP Global, Inc.'s estimate of the sufficiency of its existing capital resources, GoIP Global, Inc.'s ability to raise additional capital to fund future operations, GoIP Global, Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities and, in identifying contracts which match GoIP Global, Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. GoIP Global, Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Contact:

LHA Investor Relations

Carolyn Capaccio, CFA

ccapaccio@lhai.com

212.838.3777

  [1] The road to seamless urban mobility, McKinsey Quarterly, January 16, 2019.

FAQ

What is the significance of GoIP's acquisition of GetCharged?

The acquisition is significant as it aims to build a large network of charging solutions for micromobility devices, tapping into a rapidly growing market.

How will the acquisition impact GoIP's market position?

The acquisition is expected to enhance GoIP's market position by leveraging GetCharged's innovative solutions to capitalize on the micromobility trend.

What is the purchase price for the acquisition of GetCharged by GoIP?

GoIP acquired GetCharged for $17.5 million, which will be paid in convertible preferred shares.

When is the acquisition of GetCharged expected to close?

The acquisition is expected to close before October 15, 2020, pending customary closing conditions.

Who will lead GetCharged after the acquisition by GoIP?

Andrew Fox, CEO of GetCharged, will continue to lead the company as President and join GoIP's board of directors.