Just had this posted to me are we going to see more models on the way in the near future.
Hope your jobs remain secure.
Have been very helpful over the years
Acquisition of the UK�€�s leading electric bicycle manufacturer.
Brings prospect of immediate cashflow as product range broadened
The Directors of Metroelectric plc (�€�Metroelectric�€� or �€�the Company�€�), the PLUS
listed investment company with a growing portfolio of environmentally friendly
vehicles, today announced the acquisition of Powabyke Acquisition Limited
(�€�Powabyke�€�), owner of one of the UK�€�s leading electric powered bicycle
businesses, for approximately £1 million.
Powabyke is an established, cash-generative business and the transaction brings
the prospect of immediate cashflows which, the directors believe, will further
drive Metroelectric towards its goal of achieving near term profitability.
In addition, the transaction substantially broadens Metroelectric�€�s product
offering, and positions the Company at the forefront of one of the fastest
growing niches of the international electric powered vehicle marketplace (nb
industry experts expect Europe to buy 2.5 million electric bikes in 2009, up
355% from 550,000 in 2008).
Acquisition details
Under the terms of the acquisition, Metroelectric will acquire 100% of the
issued share capital of Powabyke for £983,997, to be satisfied by a cash payment
of £120,000 andthe allotment and issue of 107,999,640 new ordinary shares of
0.1p each in the capital of Metroelectric (�€�Ordinary Shares�€�).
Dealings in these new Ordinary Shares are expected to commence on 29th December
2009.
Funding for the cash component of the consideration has been derived from the
proceeds of a £200,000 cash subscription into Metroelectric, separately
announced this morning. As a result of this cash subscription,25,000,000 new
ordinary shares in Metroelectric have been issued to China Wonder Limited, an
associate of Wonder Auto Technology Group (�€�WATG�€�) based in Jinzhou, China. WATG
(listed on NASDAQ) is a major worldwide supplier to the automobile industry and
is currently developing a range of electric vehicles.
Metroelectric expects to be working closely with WATG on the development of
Powabyke�€�s operations, as it seeks to further expand its business in the key
Chinese market.
Both the sellers and China Wonder Limited are subject to orderly market
arrangements for a 12 month period from the first day of dealings in the
consideration and subscription shares.
Background
Since its founding in 1999, Powabyke has sold over 30,000 own branded electric
bicycles through a nationwide network of around 300 dealers including bike shops
and motor accessory retailers.
In its last full financial year, the Company generated gross profits of £177,000
on sales of £653,000.
Powabyke was bought out of administration and recapitalised in October 2009 by a
group of corporate and individual investors.
In line withMetroelectric�€�s stated strategy �€� which includes production of a
range of electric cars, scooters and vans - Powabyke provides cost effective
environmentally friendly low emission alternatives to traditional modes of
transport.
The Directors of Metroelectric believe that the two businesses are highly
complementary and a combination will offer the enlarged company the opportunity
to harness the market expertise and long-established sourcing and distribution
proficiency of Powabyke to help further develop Metroelectric into one of
Europe�€�s largest independent specialist electric vehicle producers.
Commenting on the acquisition, Greg Collier, Chairman of Metroelectric says:
�€�We are delighted to have completed this acquisition. Powabyke, with its strong
cash generation and growing order book, will provide a strong revenue stream to
help drive future expansion and development of Metroelectric.
Hope your jobs remain secure.
Have been very helpful over the years
Acquisition of the UK�€�s leading electric bicycle manufacturer.
Brings prospect of immediate cashflow as product range broadened
The Directors of Metroelectric plc (�€�Metroelectric�€� or �€�the Company�€�), the PLUS
listed investment company with a growing portfolio of environmentally friendly
vehicles, today announced the acquisition of Powabyke Acquisition Limited
(�€�Powabyke�€�), owner of one of the UK�€�s leading electric powered bicycle
businesses, for approximately £1 million.
Powabyke is an established, cash-generative business and the transaction brings
the prospect of immediate cashflows which, the directors believe, will further
drive Metroelectric towards its goal of achieving near term profitability.
In addition, the transaction substantially broadens Metroelectric�€�s product
offering, and positions the Company at the forefront of one of the fastest
growing niches of the international electric powered vehicle marketplace (nb
industry experts expect Europe to buy 2.5 million electric bikes in 2009, up
355% from 550,000 in 2008).
Acquisition details
Under the terms of the acquisition, Metroelectric will acquire 100% of the
issued share capital of Powabyke for £983,997, to be satisfied by a cash payment
of £120,000 andthe allotment and issue of 107,999,640 new ordinary shares of
0.1p each in the capital of Metroelectric (�€�Ordinary Shares�€�).
Dealings in these new Ordinary Shares are expected to commence on 29th December
2009.
Funding for the cash component of the consideration has been derived from the
proceeds of a £200,000 cash subscription into Metroelectric, separately
announced this morning. As a result of this cash subscription,25,000,000 new
ordinary shares in Metroelectric have been issued to China Wonder Limited, an
associate of Wonder Auto Technology Group (�€�WATG�€�) based in Jinzhou, China. WATG
(listed on NASDAQ) is a major worldwide supplier to the automobile industry and
is currently developing a range of electric vehicles.
Metroelectric expects to be working closely with WATG on the development of
Powabyke�€�s operations, as it seeks to further expand its business in the key
Chinese market.
Both the sellers and China Wonder Limited are subject to orderly market
arrangements for a 12 month period from the first day of dealings in the
consideration and subscription shares.
Background
Since its founding in 1999, Powabyke has sold over 30,000 own branded electric
bicycles through a nationwide network of around 300 dealers including bike shops
and motor accessory retailers.
In its last full financial year, the Company generated gross profits of £177,000
on sales of £653,000.
Powabyke was bought out of administration and recapitalised in October 2009 by a
group of corporate and individual investors.
In line withMetroelectric�€�s stated strategy �€� which includes production of a
range of electric cars, scooters and vans - Powabyke provides cost effective
environmentally friendly low emission alternatives to traditional modes of
transport.
The Directors of Metroelectric believe that the two businesses are highly
complementary and a combination will offer the enlarged company the opportunity
to harness the market expertise and long-established sourcing and distribution
proficiency of Powabyke to help further develop Metroelectric into one of
Europe�€�s largest independent specialist electric vehicle producers.
Commenting on the acquisition, Greg Collier, Chairman of Metroelectric says:
�€�We are delighted to have completed this acquisition. Powabyke, with its strong
cash generation and growing order book, will provide a strong revenue stream to
help drive future expansion and development of Metroelectric.
