Jonway Scooters China
ZAP (OTCBB: ZAAP) Heats Up with Merger Regulation
ZAP, the California company's electric vehicle (EV) production for 15 years, today announced the signed an agreement with China's Jonway Auto. ZAP will be 51% of Zhejiang Jonway Automobile Co. Ltd. The agreement between the two small-caps continue to maximize ZAP strategy to sell in the lucrative and emerging Chinese market. Since 1994 ZAP has delivered more than 117,000 different sets of vehicles to the military, government and many companies fleets. The range includes electric trucks, vans, motorcycles, scooters and quads. Jonway Auto is a wholly owned subsidiary of Jonway Group, a 20-year-old automaker in China. The company has a state-of-the-art 3.6M square meter plant in Sanmen, China. The plant currently offers more than 800 jobs for about 1,000 workers who manufacturer cars per month. Under the agreement signed by the directors of ZAP and Jonway Auto on July 2, 201, 51% of ZAP will acquire Jonway Auto for $ 21M in cash. ZAP also landed a right the remaining 49% to obtain the same valuation in March 1930, or 2011 at the current market value if acquired after the date. "By combining experienced team ZAP engineers in the production of EV Jonway opportunities, the combined Jonway ZAP will be able to scale with the rapidly growing worldwide market for affordable and fuel-efficient electric vehicles, "said Steve Schneider, CEO of ZAP Jonway." The new entity will leverage a broad intellectual property of ZAP and international market access with the current distribution of China Jonway channels and revenue base, improve shareholder value. The new company provides an integrated worldwide sales and production company. "The merger between ZAP and Jonway has a huge potential for ZAP. For one, it gives them access to major distribution channels throughout China's Jonway Jonway- has more than 80 factory direct dealers and hundreds of factory authorized dealers. Moreover, the deal allows professors to commercialize its innovative technology EV and the strengths of large Jonway volume production ability to manufacture, and marketing to maximize ROI. Earlier this year, its joint venture through ZAP Hangzhou, the company built and integrated electric drive systems Jonway different Cars. These cars are now being exhibited and used as taxis in Shanghai Electronic Expo. ZAP Shares are currently trading up of $ .02, or about 4% to $ 0.53 on below average volumes.
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