Zap Power Systems signs stock conversion agreement, extends expiry on warrants

By Sheri Kasprzak

Atlanta, Nov. 5 - Zap Power Systems said Friday it has entered into an agreement with Smart Automobile LLC to convert its original preferred shares into $8 million of new preferred shares with the Smart Automobile designation.

The shares were issued in conjunction with an April 2004 distribution agreement for $10 million.

Each preferred share has a value of $1,000. Each Smart Auto vehicle delivered to Zap in 2004, 2005 and 2006 will allow the holder of 500 shares of preferred stock SA to convert to $500,000 of common stock and allow the holder the receive 505,000 warrants with an exercise price of $2.50, exercisable through 2006.

Also on Friday, Zap announced that it has extended the expiration date of its series C warrants and series C-2 restricted warrants by one year to July 1, 2005 at an exercise price of $5 per warrant.

Santa Rosa, Calif.-based Zap is a transportation delivery technology company. On Friday, its stock closed down $0.10 at $1.25.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.