CEO Funds $10 million To Support ZAP and Jonway Auto in Delivering 11,000 EV minivan Orders

SANTA ROSA, Calif., Sept. 11, 2015 /PRNewswire/ -- ZAP (ZAAP: OTC) – Wang Gang (Alex), the Co-CEO of ZAP and CEO of Jonway Auto funds ZAP and Jonway Auto to provide additional working capital to meet current Electrical Vehicle (EV) orders in the pipeline. There is urgency to deliver the orders placed by Dong Feng Motor Corporation (www.dfmc.com.cn), working through their partners, Shi Kong based in Hangzhou, Zhejiang Province for 5,000 of Jonway Auto's EV minivans and 6,000 orders of Jonway Auto's EV minivans from Holley Metering (http://holleymeter.en.made-in-china.com).  These orders were placed last quarter with down payments for initial deliveries expected in this quarter, with expectations to complete all of the deliveries before Chinese New Year early 2016.  Due to the increase need in working capital from the large EV orders, ZAP and Jonway Auto have been seeking the funds to support the working capital to fulfill these orders.   

Wang Gang (Alex), seeing the time urgency expressed by the purchasers, recently rounded up funding for US$8.5 million for Jonway Auto and plans to fund an additional US$1.5 million specifically to enhance the working capital for the delivery of these orders as well as recent orders placed by new dealers with Jonway Auto for its SUVs.  This funding from Wang comes in as equity investment into ZAP, and partly repays the loans that ZAP has with Jonway Auto from the funding made here, and the balance will remain as long term loans that Jonway Auto borrowed from ZAP to support the working capital funds to meet the delivery of these EV orders.

The funding will provide the working capital to support of one month turnover in production of about 500 EVs of minivans or SUVs initially.  However, the objective is to be able to increase the turnover rate in the next few months and be able to bring this number to target production for 1000 EVs per month before the end of the year.  ZAP and Jonway Auto continues to seek working capital to fund the volume orders with the objective of being able to deliver several thousand orders by the end of the year.

Jonway Auto's lithium battery EV minivan which targets China's city logistic delivery market is especially in demand for city deliveries in dense cities, where daily range is no more than 200km in stop and go traffic.   ZAP and Jonway Auto's EV minivan is one of the first China type approved EV delivery vans priced competitively at just over US$20,000.  With the central and major city governments' rebates, which will remain in place, albeit tapered down over time through 2020, these EV lithium battery delivery minivans are popular for small industries and competes well with the price of gasoline versions of the same type of vehicles.

Wang's injection of capital to support the manufacturing production as well as on-going funding from Cathaya Management, a management company affiliated with Cathaya Capital, to support critical operational expenses of ZAP and Jonway Auto, the two largest shareholders of ZAP and Jonway Auto are providing much needed financial support to meet the large EV fleet market opportunities in China.

About ZAP and Jonway Auto

ZAP and Jonway Auto designs and manufactures quality, affordable new energy and electric vehicles (EVs).  Jonway Automobile has ISO 9000 manufacturing facilities, certified for EV manufacturing, and engineering, sales and customer services facilities in China.  Jonway has production capacity of up to 50,000 vehicles per year, over 1 million square feet of factory space, and over 65 acres of land and established sales distribution network in China. ZAP, an early pioneer of EVs, brings to both companies a broad range of EV product technologies. ZAP is headquartered in Santa Rosa, California and Jonway Auto is located in Zhejiang Province of the People's Republic of China. Additional information about ZAP Jonway is available at http://www.zapworld.com.

This press release contains certain forward-looking statements defined in the Private Securities Litigation Reform Act of 1995.  The words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions that may tend to suggest a future event or outcome are not guarantees of performance, which cannot be predicted or anticipated.  These forward-looking statements are based largely on expectations and are subject to a number of risks and uncertainties, many of which are beyond the control of the Company.  Actual results could differ materially from these forward-looking statements.    

Contact: Michael Ringstad 

[email protected]

707-525-8658x104

SOURCE ZAP and Jonway Auto

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