LOOPShare Acquires Loop Scooter Zone Operator to Support Global Launch
Vancouver, British Columbia--(Newsfile Corp. - April 18, 2019) - LOOPShare Ltd. (TSXV: LOOP) (OTC Pink: LPPPF), the world's first fully-integrated electric scooter sharing platform, has acquired virtually all of the outstanding shares of Loop SAL, the company's first regional LoopZone™ operator.
Loop SAL has independently operated the e-scooter service in Beirut, Lebanon since May 2017, and led the successful launch of the company's first international pilot program. Loop SAL has also played a key role in the technology and business model development of LOOPShare's cloud-based, end-to-end micro-mobility fleet management platform, including the introduction of unique functionality, safety features, and fleet management techniques.
Loop SAL has proven out a station-to-station micro-mobility model that has attracted thousands of Loop subscribers or "Loopers." This has generated extensive field data that validates LOOPShare's high-margin business model, technological advantages, strong brand, and superior ease-of-use as compared to other micro-mobility offerings.
"As we begin the global launch of our ridesharing service with the deployment of more than 400 e-scooters in key markets around the world, we believe the unique knowledge and entrepreneurial talent of the Loop SAL operational team will contribute significantly to our success," said LOOPShare's president and CEO, Anwar Sukkarie, who had also been serving as CEO of Loop SAL. "Bringing in this experienced team to assist at the corporate level will help us launch other Loop Zone operations around the world."
Earlier this year, LOOPShare announced plans to deploy the 400 e-scooters across at least eight cities internationally, including four in the U.S., beginning in the second quarter of 2019. It recently initiated a new partnership with GreenMo, a European market leader in electric vehicle rentals, with plans to launch a pilot deployment of 55 Loop e-scooters in the Netherlands. The team from Loop SAL is expected to assist in the development of the GreenMo partnership given its proximity to Europe.
Loop SAL has become a subsidiary of LOOPShare in an all-equity transaction. The acquisition includes 153 Loop scooters (110 on order and fully-paid), five highly-trained employees, and support equipment. It plans to expand its regional fleet with an additional 500 scooters over the next 12-18 months to meet current demand targets.
"This strategic acquisition also immediately expands our revenue stream from these operations from 30% to 100% and was completed at an opportune time," continued Sukkarie. "Given Loop SAL's anticipated near-term deployment of 110 additional scooters to meet growing demand, we see the scaleup turning Loop SAL profitable within 12 months of operation."
"Combined with the other scooters we plan to deploy from the 400-scooter order we announced in February, we've set the stage for a significant ramp up in revenues from multiple cities over the next several months," added Sukkarie, "and this is just the start."
LOOPShare looks to take advantage of the phenomenal growth of the global ride sharing market. According to MarketsandMarkets, the market is growing at a compounded annual growth rate of nearly 20% and will reach US$218 billion by 2025. Key market drivers include the growing need for personal mobility in the wake of rising urbanization, falling car ownership, growing smartphone usage, and stringent CO2 reduction targets.
In return for an effective 100% ownership and control of Loop SAL, LOOPShare issued 8,424,943 Class A common shares as a result of the cashless exercise of pre-existing warrants by a 40% independent shareholder and investor in Loop SAL. These shares are subject to an escrow agreement, with incremental releases over a 36-month period. Anwar Sukkarie transferred his 59.995% ownership interest in Loop SAL to LOOPShare for a nominal amount (US$1.00) as previously stipulated in the warrant terms. The remaining 0.005% of Loop SAL continues to be owned by an independent director of Loop SAL, as required by Lebanese law for companies domiciled in the country. Further details about the warrants are available in the management discussion and analysis for the nine-month period ended September 30, 2018 and filed with SEDAR on November 26, 2018.
About Loop SAL
Loop Sal was the first to introduce a shared fleet of electric scooters in the Middle East & Africa region, starting with Lebanon. Through scooter sharing, members of the community can share scooters to commute within the city during the day without the need to use cars, taxis or other modes of transportation. For more information, go to www.loopsal.com.
LOOPShare Ltd. is an emerging global leader in ridesharing, micro-mobility and sustainable transportation. Through its wholly owned subsidiary, Saturna Green Systems Inc., it has commercialized a first generation, wireless ruggedized 7-inch 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.
LOOPShare offers connected end-to-end solutions for inner-city transportation vehicles specifically geared toward Transportation-as-a-Service (TaaS). Through Zone Operators worldwide, LOOPShare is implementing TaaS solutions that offer commuter convenience and tourist applications to subscribers based on LOOPShare's state-of-the-art, wireless electric two-wheel vehicle sharing technology. To learn more, visit www.loopscooters.com.
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Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events related to LOOPShare Ltd. (or the "Company") that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to (i) the Company's expansion plans for the Loop SAL operations, (ii) future revenue and user growth of the Loop SAL operations, (iii) the Company's competitive advantages; (iv) the functionality of the Company's technology; (v) the Company or Zone Operators' future profitability; and (vi) the Company's growth plans.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "scheduled", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the accuracy, reliability and applicability of the Company's business model; the timely receipt of governmental approvals; the timely receipt of e-scooters by the Company; the success of existing and future operations; the ability of the Company to implement its business plan as intended; the Company's ability to access financing necessary to implement its business plan; the regulatory environments of the jurisdictions where the Company will carry on business or have operations; the impact of competition; and the availability of e-scooters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to acts of God, the impact of general economic conditions, changing domestic and international transportation industry conditions, increases in operating costs, terrorism, currency fluctuations, interest rates, risks specific to the transportation industry, the ability of management to implement the Company's operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund operations may not be obtained and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
Loop is a trademark of LOOPShare Ltd.
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