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SEOUL, SOUTH KOREA / ACCESSWIRE / May 24, 2016 / LEO Motors Inc. (LEOM) ("LEO" or "Company") announced today that it has executed an agreement which provides for up to $10,000,000 in financing though the sale of the Company's common stock from an institutional investor at a purchase price equal to the average of the lowest 2 VWAPs during the 5 consecutive trading days following the delivery by the Company of notice plus a 5% discount. The Company's ability to draw down on the equity line is subject to the shares of common stock being issued to the investor being registered with the Securities and Exchange Commission. There can be no assurance that the Company will receive the full amount of the equity line funding. NMS Capital Advisors served as the financial advisor to the Company.
LEO will use part of the proceeds from this funding towards its overall business plan to expand into China by forming a China based joint venture company which will manufacture electric buses and trucks. In addition, LEO will further expand its U.S. operations in developing its electric motor boat and power yacht conversion services. In its domestic market, LEO will market electric buses in Korea.
LEO has developed its patented battery swap system which enables vehicles to operate 24-hours a day without downtime for charging, as is currently the only solution with end users. By using the LEO technology, end users may swap-out used batteries with freshly charged batteries. Unlike its competitors, LEO's battery swap system allows it to use low cost equipment in swapping as a result of its patented cartridge battery system. This results in power package being divided into many lighter pieces.
In addition, LEO has developed a patented electric shock prevention system for electric motor boats and power yachts. Electric boat power systems have traditionally presented electric shock hazards because of the proximity of water. Thus users of "e-boats" are exposed to the potential of fatal electric shock accidents. LEO's proprietary technologies eliminate such dangers and this innovation positions LEO as the first company in the world to offer safety compliant water-friendly electric boats.
Dr. Kang, Chairman and CEO of LEO Motors, said, "We will start to commercialize our technology with the motor boat and power yacht conversion business in the U.S. We will offer to customers to convert existing Internal Combustion Engine motor boats and power yachts into electric motor boats and yachts. Through the use of our technology, we have developed an electric power system able to generate up to 600 horse power. Our electric power systems are also available as outboard ones." Dr. Kang added "There are many companies in the world who make electric cars, but only very few companies can make electric boats. The primary reason for this is that they do not have safety technology. The most important technology feature for e-boat safety is the LEO electric shock prevention technology. As a result of this, we are the only company in the world which can produce a truly safe e-boat."
