SANTA ROSA -- ZAP announced today it has secured up to $25 million in financing from Cathaya Capital.
The electric vehicle maker will use some of the funding to pursue longer-term contact production and assembly commitments and to speed up deliveries of trucks and vans to fill current orders, the company said.
Cathaya Capital, with offices in Silicon Valley, is backed by financier Jacques de Chateauvieux's Paris-based Jaccar Holdings and said it will manage the investment through its affiliate Better World International Ltd.
"This is a critical juncture for ZAP as we now have the means and resources to begin addressing the opportunities at hand on a global basis and to fully realize the leadership position possible in the electric vehicle marketplace," said ZAP CEO Steven Schneider.
The financing includes a private placement of 20 million shares of common stock for aggregate proceeds of $5 million and a secured loan facility of up to $10 million that will be advanced when ZAP meets certain conditions.
The new financing brings ZAP's total to $31 million raised since June.
The company employs 30 in Santa Rosa and has a footprint in Franklin, Ky., where its new president Gary Dodd is located. If ZAP is granted funding it has requested from the Department of Energy, it will build an assembly plant in Kentucky, according to Mr. Schneider. The state has offered $68 million in incentives for ZAP to build there, he said. The company also hopes to open offices in Europe and Asia.