METROELECTRIC PLC
("Metroelectric" or the "Company")
Market Update
Metroelectric is pleased to announce it has sold a 30% stake in Powabyke EV Ltd, its wholly owned subsidiary to the Green Automotive Company Corporation ("GACR"), for 1,050,000 GACR ordinary shares. The GACR shares were had a price of USD 0.44 on the last practical day before the signing of the agreement.
The Company is also pleased to announce that it has signed a management contract with Liberty Electric Cars Ltd ("Liberty"), a wholly owned subsidiary of GACR for the UK distribution of the Metroelectric's range of electric bikes under the Powabyke and eRolling brand. Under the agreement, Liberty will assume full responsibility for the UK & Eire, distribution, management and control of the Powabyke business. Consequently, the heads of term agreement between the Company and Eveport Limited, setting out the terms of an exclusive license in the UK for a period of 5 years, has been terminated.
Liberty Electric Cars Limited currently designs, develops, manufacturers and markets electric vehicle technologies for use in its own converted vehicles and for sale to Original Equipment Manufacturers for incorporation into their production. It provides a full after-market program to electric vehicle users to ensure the longevity of their vehicles and has partnership arrangements in other European countries.
Greg Collier, Chairman of Metroelectric, commented: "We have been in dialogue with Liberty for a long time as our respective companies have followed a parallel path in the same industry. Utilising the sales and marketing resource of Liberty makes complete sense to us and we hope this partnership will flourish as our range of products grows. I hope our relationship will develop enabling further collaboration in the future."
The Directors of the Company accept responsibility for this announcement.
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Enquiries:
Metroelectric Plc
Greg Collier
Tel: 07830 182501
Peterhouse Corporate Finance Ltd
Eran Zucker/Fungai Ndoro
Tel: 020 7469 0934