Green Automotive Co., which makes all-electric buses, will acquire U.K.-based Land Rover-conversion company Liberty Electric Cars for about $17 million in stock.
GAC agreed to buy Liberty Electric for 39.2 million shares of its stock, which as of the day before the agreement was announced was trading on the Pink Sheets at 43 cents a share.
GAC will get a company that's been working on its plan to sell electric-vehicle conversions of high-end SUVs for at least four years. Liberty in 2008 said it would invest £30 million ($46.5 million) on converting Land Rovers, Range Rovers and other larger SUVs into electric vehicles, and would sell them for between £95,000 ($147,000) and £125,000 ($194,000). The company said at the time that the vehicles would have single-charge ranges of about 200 miles.
Two years later, Liberty announced the debut of the all-electric E-Range, a converted Range Rover that had that 200-mile single-charge range as well as four-wheel-drive capability and a 100 mile-per-hour top speed. By then, the price tag had jumped to £160,000 ($248,000).
And last March, Iceland-based EV maker Northern Lights said it would buy 150 Liberty Electric vehicles as part of a four-year contract valued at about £24 million ($37 million).
GAC says Liberty has agreements with companies such as Volkswagen and Fiat for more all-electric conversions.
NEWPORT BEACH, Calif., June 29, 2012 (GLOBE NEWSWIRE) -- Green Automotive Company (OTC:GACR) announced today that it has signed an agreement to acquire Liberty Electric Cars Limited (www.liberty-ecars.com). Liberty Electric Cars is a state-of-the-art vehicle design, engineering and manufacturing company, driving innovation in the use of leading edge zero and low emission technologies to satisfy growing demand for environmentally friendly transport solutions around the world. Liberty also provides a unique after sales program for electric vehicles across Europe, maximizing the life-time value of clean transport solutions.
Green Automotive will purchase all of the issued and outstanding stock of Liberty Electric Cars Ltd. and its subsidiary LEC 2, Limited, in exchange for 39,172,178 shares of Green Automotive Company common stock.
Liberty, through its E-Tech division, is involved in a number of advanced research programs for developing next generation EV solutions, many in partnership with Tier 1 automotive manufacturers. These include the prestigious "Deliver" project where Liberty is working together with Volkswagen, Fiat and Michelin to develop a pure electric commercial vehicle. In addition the "Motore" project in which Liberty is partnered with Cranfield University, Rolls Royce Electric Machines and Protean aims to develop a "rare earth" free electric motor technology. Moreover Liberty's engineers have invented, IP-protected, innovative electric vehicle (EV) drive train technologies, that can be employed in a wide variety of vehicle platforms (trucks, buses, 4x4, SUV, MPV and pickup trucks) as reveled in its flagship technology demonstrator, the Liberty E-Range – the worlds first, pure electric, luxury 4x4.
"Liberty's technically rich team and their focus on larger platforms from 4x4 through to commercial vehicles is completely consistent with the our business objectives and direction" said Fred Luke, President of Green Automotive. "I believe that producing dependable small to mid-size electric buses is an emerging market of mammoth proportions and there is no doubt that Liberty's technical team gives us a big advantage."
Liberty, through its E-Care division, has pioneered the creation of after sales support for Electric Vehicles, by providing the most comprehensive maintenance program throughout Europe for electric trucks and cars. This E-Care service delivers properly trained, highly skilled engineers equipped with new and unique diagnostic tools; experience in safe intervention for high voltage systems and access to the right parts to affect quality repairs. Liberty's E-Care clients include UPS, FedEx, Navistar, Veolia, Tesco and many more.
About Green Automotive Company: Green Automotive Company is a US public company involved in the Conversion, Import and Distribution of Eco-friendly vehicles. The Company is presently planning to bring All-Electric and other Eco-friendly vehicles into the United States market through a combination of converting piston engine vehicles and importing existing EV's. The Company is currently involved in assessing a number of All-Electric and alternate fuel vehicles including an All-Electric Intra-City and Municipal Mass Transit Bus and School Bus, for introduction to the US market. The Company maintains its Corporate Office in Newport Beach, California. Green Automotive Company shares are traded on the OTC Market Tier--OTC Pink Current under the symbol "GACR". For more information visit www.usaelectricauto.com or write to firstname.lastname@example.org.
About Liberty Electric Cars Limited: Liberty Electric Cars Limited was incorporated on November 10, 2006 in England and Wales. Liberty Electric Cars Limited currently designs, develops, manufacturers and markets electric vehicle technologies for use in its own converted vehicles and for sale to OEM's for incorporation into their production. It provides a full aftermarket program to electric vehicle users to ensure the longevity of their vehicles and has partnership arrangements in other European countries. The Liberty team, can count on over 200 man years of experience in the Automotive industry and specifically 70 plus man years in the EV sector covering some 2,500,000 miles
Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Green Automotive Company incorporates by reference its disclosure and financial statements posted on www.otcmarkets.com, and does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
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