Company Takes First Step in Corporate Action Plan Post-Financing and Re-Structuring
Vancouver, British Columbia–(Newsfile Corp. – January 24, 2019) – LOOPShare Ltd. (TSXV: LOOP) (the “Company” or “LOOP”) a micro mobility and ride-sharing company focused on sustainable urban transportation, is pleased to announce that it has entered into an Asset Purchase Agreement (the “Agreement”) with Raytroniks Corporation (“Raytroniks”) to acquire the ‘Scoot-E’ brand. In conjunction with the acquisition of the brand, Ray J, the principal of Raytroniks, has entered into a consulting agreement (the “Consulting Agreement”) to become a key member of the LOOP team. Ray J is a successful tech-entrepreneur, TV personality and musician.
Upon closing of the Raytroniks transaction (the “Transaction”) LOOP will receive several benefits including:
Acquisition of a recognized brand in the electric transportation industry.
Increased visibility in the global micro mobility and ride-sharing industry.
Access to expertise and vision of a successful tech-entrepreneur in Ray J.
“When I first met Ray J I immediately realized that his passion and experience in the electric scooter industry and market would create a significant positive dynamic to LOOPShare, its investors, and its immediate and longer-term prospects,” said Anwar Sukkarie, President and Chief Executive Officer of LOOPShare. “We are looking forward to working with Ray J as we prepare for the global rollout of our fun, safe and environmentally friendly scooter ride sharing service this year.”
Raytroniks was formed to offer a new wave of electronic transportation, providing an eco-friendly, efficient and convenient mode of transportation customized with the unique designs and features of the Scoot-E brand; a vision which directly aligns with LOOP’s core scooter sharing business model. High profile celebrities like Sean “Diddy” Combs, Justin Bieber, Chris Brown, Brandy Norwood, and Snoop Dogg have all been seen riding and enjoying their Scoot-E-Bikes. This venture with Ray J comes off the back of his successful $31 million-dollar partnership with Cowboy Wholesale to form Raycon Global, a successful consumer electronics brand (https://www.businesswire.com/news/home/20171109006428/en/) .
“I want to thank everyone that has supported the ‘Scoot-E’ bike and for all the hard work that my team has devoted to making the brand a success,” said Ray J, who will acquire a significant equity stake in the Company which will be his first public company venture. “I’m excited to join the LOOPShare team as an executive member. My goal, looking forward, is to revolutionize the e-transportation industry through enhanced technologies, strategic marketing and streamlined services”.
Pursuant to the terms of the Agreement, LOOP has agreed to issue 18,240,000 common shares (the “Shares”) to Raytroniks, in return for the purchased assets (the “Purchased Assets”). The Purchased Assets include the rights to the ‘Scoot-E’ brand, including the trademarks for ‘Scoot-E’, ‘Scoot-E-Bike’ and ‘Scoot-E-Bike by Raytroniks’. The Company intends to integrate the ‘Scoot-E’ brand into its portfolio of intellectual property and use it to help drive awareness of its core scooter sharing business model.
Pursuant to the terms of the Consulting Agreement, Ray J will become a key member of the LOOP executive team and will also act as a “Brand Ambassador” to the Company. He will facilitate and promote the Company’s expansion of its products and services to new cities and markets in the United States and globally.
The Shares will be subject to certain vesting and escrow provisions. Raytroniks and Ray J are arm’s length to LOOP. The Transaction is subject to customary closing conditions, including the receipt of regulatory approval from the TSX Venture Exchange. A finder’s fee will be payable in connection with the Transaction in compliance with the rules and policies of the TSX Venture Exchange.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About LOOPShare Ltd.
LOOPShare Ltd. (TSXV: LOOP), a Vancouver company established in 2009 focused on ridesharing, micro mobility and sustainable transportation, and its wholly owned subsidiary Saturna Green Systems Inc. have commercialized a first generation, wireless ruggedized 7″ touchscreen dashboard with Telematics functionality for electric inner-city vehicles. LOOPShare’s highly specialized display enables a broad range of services for consumer, tourism or commercial use.