DropCar Signs Definitive Stock Purchase Agreement to Sell Its Suisun Operations for $3.5 Million
17 December 2018 - 11:00PM
Business Wire
Closing anticipated prior to December 31,
2018, subject to satisfaction of closing conditions
DropCar, Inc. (Nasdaq:DCAR), a leading provider of last mile
logistics technology, mobility services and cloud based software
for both the automotive industry and consumers, today announced
that it has entered into a definitive stock purchase agreement
(“Agreement”) to sell its subsidiary, WPCS International - Suisun
City, Inc. (“Suisun Operations”), to certain members of the current
management team of Suisun Operations, in an all-cash transaction
expected to close prior to December 31, 2018, subject to
satisfaction of closing conditions.
CEO Spencer Richardson stated, “We are pleased to announce the
signing of this Agreement which will add approximately $3.2 million
in non-dilutive cash to the Company’s balance sheet. Paired with
the dramatic reduction in our burn by approximately $650k per month
as the result of our updated model for consumers and related
streamlining efforts in Q3 and into Q4, we believe we’re now in a
position where we can focus our full energy and resources on the
growing number of deals and opportunities knocking on our front
door.”
About DropCar
Founded and launched in New York City in 2015, DropCar's mission
is to power the next generation of mobility by bringing the
automotive industry's products and services to everyone's front
door. DropCar's core Mobility Cloud platform, and integrated mobile
apps help consumers and automotive-related companies reduce the
cost, hassles and inefficiencies of owning a car, or fleet of cars,
in urban centers. Dealerships, fleet owners, OEMs and shared
mobility companies use DropCar's last mile logistics platform to
reduce costs, streamline logistics and deepen relationships with
customers. More information is available at https://drop.car/
Forward-Looking Statements
This press release contains “forward-looking statements” that
involve substantial risks and uncertainties for purposes of the
safe harbor provided by the Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical
facts, included in this press release regarding strategy, future
operations, future financial position, future revenue, projected
expenses, prospects, plans and objectives of management are
forward-looking statements. Such statements are based on
management’s current expectations and involve risks and
uncertainties. Actual results and performance could differ
materially from those projected in the forward-looking statements
as a result of many factors, including, without limitation, the
ability to project future cash utilization and reserves needed for
contingent future liabilities and business operations, the
availability of sufficient resources of the company to meet its
business objectives and operational requirements and the impact of
competitive products and services and technological changes. The
foregoing review of important factors that could cause actual
events to differ from expectations should not be construed as
exhaustive and should be read in conjunction with statements that
are included herein and elsewhere, including the risk factors under
the heading “Risk Factors” in DropCar’s filings with the Securities
and Exchange Commission. Except as required by applicable law,
DropCar undertakes no obligation to revise or update any
forward-looking statement, or to make any other forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20181217005165/en/
Investor RelationsSpencer Richardsonir@DropCar.com(646)
916-4595
DropCar (NASDAQ:DCAR)
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