Arcimoto Inc. Secures $4.5 Million for Electric Vehicle Production
Jan. 2, 2019—Arcimoto, Inc., the creator of the "Fun Utility Vehicle," announced that it has raised $4.5 million in funding and is now targeting production of the world’s first "Fun Utility Vehicles" for retail customers in the first quarter of 2019. The "Fun Utility Vehicles" are marketed as affordable electric vehicles are for both commuters and fleets.
The financing, led by FOD Capital, LLC, included the purchase of 500,000 shares of Arcimoto’s common stock at a purchase price of $3.00 per share, as well as the issuance of a $3.0 million senior secured note, which bears 10% interest over a one-year term, and a warrant to purchase 942,857 shares of registered FUV common stock for $3.50 per share. ROTH Capital Partners acted as a financial advisor for the transaction.
“This financing will allow Arcimoto to take the next critical step: the semi-automated manufacture, assembly, and delivery of our first retail vehicles. With global demand for electric vehicles accelerating, we are confident that Arcimoto’s vision–of a capital efficient enterprise producing affordable, efficient, small-footprint EVs designed for everyday driving, is well-timed,” said Mark Frohnmayer, president and founder of Arcimoto."
“We believe this funding positions us to begin delivering on our 3,250 customer pre-orders, as well as deploy rental fleets in key destination cities.”
Arcimoto’s current pre-order deposits represent approximately $49 million in anticipated sales revenue for the company.