NEW YORK--(BUSINESS WIRE)--DropCar, Inc. , a leading provider of last mile logistics technology, mobility services and cloud based software for both the automotive industry and consumers, today announced that it has entered into a definitive stock purchase agreement (“Agreement”) to sell its subsidiary, WPCS International - Suisun City, Inc. (“Suisun Operations”), to certain members of the current management team of Suisun Operations, in an all-cash transaction expected to close prior to December 31, 2018, subject to satisfaction of closing conditions.
CEO Spencer Richardson stated, “We are pleased to announce the signing of this Agreement which will add approximately $3.2 million in non-dilutive cash to the Company’s balance sheet. Paired with the dramatic reduction in our burn by approximately $650k per month as the result of our updated model for consumers and related streamlining efforts in Q3 and into Q4, we believe we’re now in a position where we can focus our full energy and resources on the growing number of deals and opportunities knocking on our front door.”
Founded and launched in New York City in 2015, DropCar's mission is to power the next generation of mobility by bringing the automotive industry's products and services to everyone's front door. DropCar's core Mobility Cloud platform, and integrated mobile apps help consumers and automotive-related companies reduce the cost, hassles and inefficiencies of owning a car, or fleet of cars, in urban centers. Dealerships, fleet owners, OEMs and shared mobility companies use DropCar's last mile logistics platform to reduce costs, streamline logistics and deepen relationships with customers. More information is available at https://drop.car/
This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources of the company to meet its business objectives and operational requirements and the impact of competitive products and services and technological changes. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors under the heading “Risk Factors” in DropCar’s filings with the Securities and Exchange Commission. Except as required by applicable law, DropCar undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.