(LOOP.V) Apr. 18, 2019 – LOOPShare Ltd., the world’s first fully-integrated electric scooter sharing platform, has acquired virtually all of the outstanding shares of Loop SAL, the company’s first regional LoopZone operator.
Loop SAL has independently operated the e-scooter service in Beirut, Lebanon since May 2017, and led the successful launch of the company’s first international pilot program. Loop SAL has also played a key role in the technology and business model development of LOOPShare’s cloud-based, end-to-end micro-mobility fleet management platform, including the introduction of unique functionality, safety features, and fleet management techniques.
Loop SAL has proven out a station-to-station micro-mobility model that has attracted thousands of Loop subscribers, or “Loopers.” This has generated extensive field data that validates LOOPShare’s high-margin business model, technological advantages, strong brand, and superior ease-of-use as compared to other micro-mobility offerings.
“As we begin the global launch of our ridesharing service with the deployment of more than 400 e-scooters in key markets around the world, we believe the unique knowledge and entrepreneurial talent of the Loop SAL operational team will contribute significantly to our success,” said LOOPShare president and CEO, Anwar Sukkarie, who had also been serving as CEO of Loop SAL. “Bringing in this experienced team to assist at the corporate level will help us launch other Loop Zone operations around the world.”
Earlier this year, LOOPShare announced plans to deploy the 400 e-scooters across at least eight cities internationally, including four in the U.S., beginning in the second quarter of 2019. It recently initiated a new partnership with GreenMo, a European market leader in electric vehicle rentals, with plans to launch a pilot deployment of 55 Loop e-scooters in the Netherlands. The team from Loop SAL is expected to assist in the development of the GreenMo partnership given its proximity to Europe.
Loop SAL has become a subsidiary of LOOPShare in an all-equity transaction. The acquisition includes 153 Loop scooters (110 on order and fully-paid), five highly-trained employees, and support equipment. It plans to expand its regional fleet with an additional 500 scooters over the next 12 to 18 months to meet current demand targets.
“This strategic acquisition also immediately expands our revenue stream from these operations from 30 to 100 percent and was completed at an opportune time,” Sukkarie added. “Given Loop SAL’s anticipated near-term deployment of 110 additional scooters to meet growing demand, we see the scale-up turning Loop SAL profitable within 12 months of operation. … Combined with the other scooters we plan to deploy from the 400-scooter order we announced in February, we’ve set the stage for a significant ramp-up in revenues from multiple cities over the next several months, and this is just the start.”
LOOPShare looks to take advantage of the phenomenal growth of the global ride sharing market. According to MarketsandMarkets, the market is growing at a compounded annual growth rate of nearly 20 percent and will reach USD$218 billion by 2025. Key market drivers include the growing need for personal mobility in the wake of rising urbanization, falling car ownership, growing smartphone usage, and stringent CO2 reduction targets.
In return for an effective 100 percent ownership and control of Loop SAL, LOOPShare issued 8,424,943 Class A common shares as a result of the cashless exercise of pre-existing warrants by a 40 percent independent shareholder and investor in Loop SAL. These shares are subject to an escrow agreement, with incremental releases over a 36-month period. Anwar Sukkarie transferred his 59.995 percent ownership interest in Loop SAL to LOOPShare for a nominal amount (USD$1) as previously stipulated in the warrant terms. The remaining 0.005 percent of Loop SAL continues to be owned by an independent director of Loop SAL, as required by Lebanese law for companies domiciled in the country.
Loop Sal was the first to introduce a shared fleet of electric scooters in the Middle East and Africa region, starting with Lebanon. Through scooter sharing, members of the community can share scooters to commute within the city during the day without the need to use cars, taxis or other modes of transportation.
LOOPShare is an emerging global leader in ride-sharing, micro-mobility and sustainable transportation. Through its wholly owned subsidiary, Saturna Green Systems Inc., it has commercialized a first-generation, wireless ruggedized touchscreen dashboard with telematics functionality for electric inner-city vehicles. LOOPShare’s highly specialized display enables a broad range of services for consumer, tourism or commercial use.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.