NEWPORT BEACH, CA--March 25, 2013: -Green Automotive Company (OTC:GACR), catering to the electric vehicle business, announced that it has entered into a $3 million common stock purchase agreement with Kodiak Capital Group, LLC, a Newport Beach-based institutional investor. The Company has agreed to file a registration statement with the U.S. Securities & Exchange Commission covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement.
“This is a great step forward for GACR”
After the SEC has declared the registration statement related to the transaction effective, the Company has the right at its sole discretion over a period of one year to sell up $3 million of its common stock to Kodiak under the terms set forth in the agreement. Proceeds from this transaction will be used to fund the company's business development and for general corporate purposes.
"This is a great step forward for GACR," commented Darren West, CFO and a Member of the Board of Directors of GACR. "Kodiak is an excellent partner for us with a great track record and a long-term commitment to our industry. This transaction offers the Company a very cost efficient and readily available form of financing. The $3 million available under the agreement is ample funding for our immediate expansion requirements, which we believe will take our business to the next level. This agreement strengthens our balance sheet allowing us to focus on advancing our technology development program, reinforcing our production capacity to fulfill our order book and launch the first American electric shuttle bus as well as pursuing strategic partnerships, and other long-term objectives."
Under the terms of the agreement, there are no upper limits to the price that Kodiak may pay to purchase the Company's common stock and this transaction in no way impedes or changes the Company's strategic objectives. The Company plans to continue pursuing its stated corporate milestones of consolidating in the emerging Electric Vehicle sector and pursuing the optimal corporate partnerships for its technology development programs. The Kodiak financing commitment simply strengthens the Company's balance sheet and makes available an additional source of funding. Under the terms of the agreement, Kodiak has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company's shares of common stock.
Colin Manners, Director of Kodiak, said, "We are very pleased to be entering into this agreement with GACR. Kodiak has been following the progression of the Company over several months and we are excited to add a local business to our thriving EV portfolio. We are very impressed by the Company's business plan and management's ability to prepare and timely execute on their objectives."