Echo Automotive, Inc. announced end of May it has joined Calstart, North America’s advanced transportation technologies consortium, with the goal of accelerating awareness and adoption of bolt-on hybrid solutions.
Echo is a developer of technologies enabling the cost-effective conversion of existing vehicles into hybrids and plug-in hybrids,
Calstart is described by Echo as an industry leader in working with fleets to implement clean fuel vehicle solutions, with manufacturers to develop commercialization strategies, and with public and private sources to obtain seed funding to speed the conversion of fleets to alternative fuels.
“Echo is excited to be a part of Calstart. We recognize and appreciate the outstanding work the organization has done and continues to do to advance innovative transportation technologies,” said Jason Plotke, Echo President and Co-founder. “Our award-winning EchoDrive platform powers solutions that support Calstart’s mission and offer a bolt-on alternative that allows more operators to take advantage of incentives and more vehicles to get to clean technology faster.”
According to Echo, aligning with this organization supports Echo Automotive’s commitment to working with experts in the field to further the cause and adoption of emerging clean technologies.
“We are pleased to have Echo Automotive join Calstart as a member company,” said John Boesel, President and CEO of Calstart. “Fleets in California and beyond will benefit from more cost-effective and fuel-efficient options to address the challenge of rising fuel costs.”
During the same week of May, Echo announced completion of financing with United Fleet Financing, LLC, that provides $3,000,000 of working capital for the Company through a Private Placement Offering and Mezzanine Financing.
“This $3,000,000 infusion of working capital will allow us to ramp up our order fulfillment operations and meet the growing demand for EchoDrive kits more quickly,” stated Dan Kennedy, Echo’s CEO. “We are very pleased by the completion of this financing, the support offered by United Leasing, and the positive response we continue to receive from the marketplace.”
The Company authorized the sale and issuance of up to 2,727,273 units of Company securities to United Fleet in a private placement for the purpose of raising working capital to accelerate the Company’s business plan.
Each unit consists of one share of the Company’s common stock at $0.55 per share and one warrant exercisable to purchase one and one-quarter (1.25) shares of common stock at an exercise price per share of $0.65.
The proceeds will be provided by United Fleet on a tranche basis with monthly installments for nine months starting June 2013.
Additionally, United Fleet and Echo said they consummated a financing and security agreement in which United Fleet agreed to provide an additional $1,500,000 of working capital for Echo through mezzanine financing.
The mezzanine financing is a five year secured note with accrued interest at an annual rate of eight percent. The terms of this note include conversion features at $0.55 per share and warrant rights with a strike price of $0.65. This additional working capital will also be provided to the Company in nine monthly installments starting June 2013.