Swvl's Founders, SPAC Sponsor and Certain Pre-Business Combination Investors Voluntarily Extend Lock-Up Reinforcing Long-Term Commitment

Rhea-AI Summary

Swvl Holdings Corp (NASDAQ: SWVL) announced on July 10, 2022, that key shareholders, including founders and pre-business combination investors, voluntarily extended their lock-up agreements. This extension applies to approximately 84% of the total outstanding shares, covering 100,414,134 Class A Ordinary Shares. Initially, these agreements varied from 6 to 12 months but have now been extended to 12 or 18 months. This move follows Swvl's recent growth in Latin America and the acquisition of Urbvan, which enhances its transport-as-a-service and software-as-a-service operations.

Positive

• Lock-up extensions apply to approximately 84% of outstanding shares, indicating shareholder confidence.
• Extension period increased to 12 or 18 months, showing long-term commitment from key shareholders.
• Follows the successful expansion in Latin America and acquisition of Urbvan, enhancing business offerings.

Negative

• None.

• Lock-Up Extensions apply to approximately 84% of the total number of currently outstanding Swvl shares
• Founders, SPAC Sponsor and certain Pre-Business Combination Investors have extended lockups to 6 months beyond the original release date (subject to the exceptions therein)
• A total of 31 extension agreements were executed
• Follows the announcement of Swvl's further expansion in Latin America and its highest profitability operations TaaS and SaaS with acquisition of Urbvan

NEW YORK, July 13, 2022 /PRNewswire/ -- /PRNewswire/ -- Swvl Holdings Corp ("Swvl" or the "Company") (NASDAQ: SWVL), a global provider of transformative tech-enabled mass transit solutions, today announced that, on July 10, 2022, certain shareholders and directors and/or officers of the Company, including certain of its pre-business combination shareholders and key executives and Queen's Gambit Holdings LLC (collectively, the "Lock-Up Holders"), entered into voluntary extensions to their respective lock-up agreements.

Previously these shareholders were subject to Lock-Up Agreements varying from 6 to 12 months after the date of closing of Swvl's business combination on March 31, 2022 (depending on the applicable Lock-Up Holder's beneficial ownership of Class A Ordinary Shares and subject to the exceptions therein). Pursuant to these extensions, certain Lock-Up Holders have now committed to extend this time period to 12 or 18 months following March 31, 2022 (depending on the applicable Lock-Up Holder's beneficial ownership of Class A Ordinary Shares and subject to the exceptions therein).

Collectively, the Lock-Up Holders that agreed to enter into the Lock-Up Extensions own 100,414,134 Class A Ordinary Shares, which represents approximately 84% of the total number of Class A Ordinary Shares outstanding as of the date of this release.

Mostafa Kandil, Swvl Founder and CEO, said, "Our shareholders share our conviction in Swvl's future and demonstrated this again through these voluntary lock-up extensions. We are grateful to them for having shown their support and long-term commitment through this action."

Youssef Salem, Swvl CFO, said, "We have always appreciated the long-term commitment of our stakeholders. The voluntary extension of the lock-up agreements is testament to the continued support of our shareholders and their confidence in what we are building."

About Swvl

Swvl is a global provider of transformative tech-enabled mass transit solutions, offering intercity, intracity, B2B and B2G transportation across > 135 cities in > 20 countries. The Company's platform provides complimentary semi-private alternatives to public transportation for individuals who cannot access or afford private options. Every day, Swvl's parallel mass transit systems are empowering individuals to go where they want, when they want – making mobility safer, more efficient, accessible, and environmentally friendly. Customers can book their rides on an easy-to-use proprietary app with varied payment options and 24 / 7 access to high-quality private buses and vans.

Swvl was co-founded by Mostafa Kandil, who began his career at Rocket Internet, where he launched the car sales platform Carmudi in the Philippines, which became the largest car classifieds company in the country in just six months. He then served as Rocket Internet's Head of Operations. In 2016, Kandil joined Careem, a ride-sharing company and the first unicorn in the Middle East. He supported the platform's expansion into multiple new markets.

For additional information about Swvl, please visit www.swvl.com.

Forward Looking Statements

Certain statements made herein are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding future events and other statements that are not historical facts.

These statements are based on the current expectations of Swvl's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Swvl. These statements are subject to a number of risks and uncertainties regarding Swvl's business, and actual results may differ materially. These risks and uncertainties include, but are not limited to: general economic, political and business conditions, including but not limited to the economic and operational disruptions and other effects of the COVID-19 pandemic; the ability of the combined company to execute its growth strategy, manage growth profitably and retain its key employees; competition with other companies in the mobility industry; Swvl's limited operating history and lack of experience as a public company; recent implementation of certain policies and procedures to ensure compliance with applicable laws and regulations, including with respect to anti-bribery, anti-corruption, and cyber protection; the risk that Swvl is not able to execute its portfolio optimization plan; the risk that Swvl is unable to attract and retain consumers and qualified drivers and other high quality personnel; the risk that Swvl is unable to protect and enforce its intellectual property rights; the risk that Swvl is unable to determine rider demand to develop new offerings on its platform; the difficulty of obtaining required registrations, licenses, permits or approvals in jurisdictions in which Swvl currently operates or may in the future operate; the fact that Swvl currently operates in and intends to expand into jurisdictions that are, or have been, characterized by political instability, may have inadequate or limited regulatory and legal frameworks and may have limited, if any, treaties or other arrangements in place to protect foreign investment or involvement; the risk that Swvl's drivers could be classified as employees, workers or quasi-employees in the jurisdictions they operate; the fact that Swvl has operations in countries known to experience high levels of corruption and is subject to territorial anti-corruption laws in these jurisdictions; the ability of Swvl to maintain the listing of its securities on Nasdaq; Swvl's acquisitions may not be beneficial to Swvl as a result of the cost of integrating geographically disparate operations and the diversion of management's attention from its existing business, among other things; and other risks that will be detailed from time to time in filings with the U.S. Securities and Exchange Commission. The foregoing list of risk factors is not exhaustive. There may be additional risks that Swvl presently does not know or that Swvl currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Swvl's expectations, plans or forecasts of future events and views as of the date of this communication. Swvl anticipates that subsequent events and developments will cause Swvl's assessments and projections to change. However, while Swvl may elect to update these forward-looking statements in the future, Swvl specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Swvl's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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SOURCE Swvl

FAQ

What does the recent lock-up extension mean for SWVL shareholders?

The lock-up extension indicates strong confidence from key shareholders in SWVL's future, as it applies to approximately 84% of outstanding shares.

When was the lock-up extension for SWVL announced?

The lock-up extension for SWVL was announced on July 10, 2022.

What percentage of SWVL's shares are affected by the lock-up extension?

Approximately 84% of Swvl's total outstanding shares are affected by the lock-up extension.

What recent developments preceded the lock-up extension for SWVL?

The lock-up extension follows Swvl's expansion in Latin America and the acquisition of Urbvan, boosting its business operations.