ElectraMeccanica Strategic Partner Zongshen Industrial Group Validates Company’s Go Forward Strategy With The Exercise of 1.4 Million Warrants

Rhea-AI Summary

ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) announced it received approximately CAD$5.6 million following the exercise of 1.4 million warrants at a CAD$4.00 strike price. This transaction, completed by partner Zongshen Industrial Group on October 28, 2021, is viewed as validation of ElectraMeccanica's mission to revolutionize transportation. The company's flagship vehicle, the SOLO, aims to provide an innovative urban driving experience, promoting environmentally efficient travel.

Positive

• Received approximately CAD$5.6 million from the exercise of 1.4 million warrants.
• Validation of ElectraMeccanica's mission through strategic partnership with Zongshen.

Negative

• Potential dilution of shares due to the raising of capital through warrants.

Company Received Approximately CAD$5.6 Million in Proceeds As A Result of Warrant Exercise

VANCOUVER, British Columbia, Nov. 01, 2021 (GLOBE NEWSWIRE) -- ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("ElectraMeccanica" or the "Company"), a designer and manufacturer of electric vehicles, today announced that the Company’s strategic contract manufacturing partner, Zongshen Industrial Group, has exercised 1.4 million warrants at a CAD$4.00 strike price, as of October 28, 2021, generating CAD$5.6 million in proceeds to the Company.

“We are pleased to have received these proceeds from the warrant exercise – serving as validation of all that we do at ElectraMeccanica,” said Kevin Pavlov, CEO of ElectraMeccanica. “I look forward to continuing our operational execution in the months and years ahead as we strive to revolutionize transportation and create sustainable, long-term value for all of our shareholders.”

“We strongly believe in ElectraMeccanica’s mission and the groundbreaking SOLO EV, with this warrant exercise is a clear testament to our confidence in the Company’s future and the value we place on our mutual relationship,” said Zongshen Industrial Group Chairman Zuo.   

About ElectraMeccanica Vehicles Corp.

ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a Canadian designer and manufacturer of environmentally efficient electric vehicles (EVs). The company’s flagship vehicle is the innovative, purpose-built, single-seat EV called the SOLO. This three-wheeled vehicle will revolutionize the urban driving experience, including commuting, delivery and shared mobility. Engineered for a single occupant, it offers a unique driving experience for the environmentally conscious consumer. The SOLO has a range of 100 miles and a top speed of 80 mph, making it safe for highways. The SOLO also features front and rear crumple zones, side impact protection, roll bar, torque-limiting control as well as power steering, power brakes, air conditioning and a Bluetooth entertainment system. It blends a modern look with safety features at an accessible price point of $18,500. The SOLO is currently available for pre-orders here. InterMeccanica, a subsidiary of ElectraMeccanica, has successfully been building high-end specialty cars for 61 years. For more information, please visit www.electrameccanica.com.

Safe Harbor Statements

Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “anticipates”, “estimates”, “projects”, “expects”, “contemplates”, “intends”, “believes”, “plans”, “may”, “will”, or their negatives or other comparable words) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the prices of other electric vehicles, costs associated with manufacturing vehicles, the availability of capital to fund business plans and the resulting dilution caused by the raising of capital through the sale of shares, changes in the electric vehicle market, changes in government regulation, developments in alternative technologies, inexperience in servicing electric vehicles, labour disputes and other risks of the electric vehicle industry including, without limitation, those associated with the delays in obtaining governmental approvals and/or certifications. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the “SEC”) (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Investor Relations Contact

MZ Group
(949) 259-4987
SOLO@mzgroup.us

FAQ

What is the significance of the warrant exercise for SOLO?

The warrant exercise provided ElectraMeccanica with approximately CAD$5.6 million, enhancing its capital for operations and development.

When was the warrant exercise executed for ElectraMeccanica?

The warrant exercise was executed on October 28, 2021.

Who exercised the warrants for ElectraMeccanica?

The warrants were exercised by Zongshen Industrial Group.

What is the expected impact of the warrant exercise on SOLO's stock?

The capital raised may positively influence ElectraMeccanica's operations, although there are concerns about potential share dilution.

What is ElectraMeccanica's flagship vehicle?

ElectraMeccanica's flagship vehicle is the SOLO, a single-seat electric vehicle designed for urban commuting.