Ola Electric Mobility acquisition details
With mixed feelings, we can now share the news that Etergo’s vision and future stand secured with the acquisition of the company by Ola Electric, a global electric mobility unicorn based out of India.
As you are aware, Etergo has been in conversation with many investors all over the world, including Ola Electric, in the recent past to secure future funding. Other than the discussions with Ola Electric, these discussions did not result in any offers that offered a realistic possibility to fund the company's operational and other requirements, and to safeguard the company's future. As a result, the company was faced with the need to secure its continuity and avenue for future financing and growth. In view of the above reality and due to the challenges posed by the steep funding requirements for automotive hardware and the ongoing COVID-19 crisis, the opportunity to partner with Ola Electric has emerged as the best course of action in the interest of securing Etergo's and the AppScooter's future, while it seeks to safeguard the company's ability to execute Etergo’s vision. Thus, Etergo has realised, following due consideration of the alternatives, it is in the best interest of Etergo and its employees, its trade creditors and other stakeholders taken as a whole for Etergo to partner with Ola Electric.
While this means that the share price will see a significant loss for our investors, the acquisition will return some of the money that has been invested and thus also serves the interest of the investors.
To mitigate some of the losses made by the investors, the founders, Bart and Marijn, have decided to waive their right to consideration for their shares in Etergo. These amounts have been distributed pro-rata among the other shareholders on a fully diluted basis, resulting in an effective share price of €0,0179986 per share.
The transaction to sell Etergo to Ola Electric was approved by all other shareholders, other than the foundations through which Etergo’s crowdfunders hold their equity stake, which foundations are contractually obligated to co-sell on behalf of Etergo’s crowdfunders on the same terms and conditions as applicable to the other shareholders. Investors that hold equity in Etergo through these foundations will be contacted soon for the distribution of the proceeds received from the transaction. If you have not been contacted, send an email to [email protected].
Bart and Marijn continue to remain employed with Etergo following its acquisition by Ola Electric.
The Ola Group’s vision to build mobility for all, is driven by its businesses spread across ride-hailing, electric mobility, public transit solutions and asset management apart from leveraging its robust platform to offer financial services and its food brands, serving over 250 million consumers. Etergo is excited to be part of Ola’s vision and join hands with Ola Electric as we continue to dedicate our energies towards reimagining electric mobility, together with Ola.
About Ola Electric
Ola Electric is an Indian unicorn which is ideally positioned in the electric urban mobility sector to rapidly capture significant market share in the coming years. It’s a part of the Ola Group which operates one of the world’s largest ride-hailing platforms. With a presence in 250+ cities globally, across India, Australia, New Zealand, and the United Kingdom, Ola Electric plans to quickly roll-out their battery swapping ecosystem infrastructure that's ideally suited for two-2 and three-3 wheelers on a global scale.