UBCO, the electric bike company, has raised the minimum $35 million sought in a Series B capital raising and is continuing towards an upper target of $53m over the next month.
Those figures in New Zealand dollars equate to $20m and $30m in United States dollars.
The Series B information memorandum is directed at qualified investors with a minimum investment of $1001.
Lead investors who are already shareholders have committed the first $17m and stand to benefit from a share split when the Series B round closes.
Chief among them is TPK Holdings of Taiwan, an electric component manufacturing company providing the large volumes of bike parts, and UBCO’s New Zealand founders, Daryl Neal and Anthony Clyde.
UBCO has sold over 4000 of its electric work and outdoor recreational bikes and has published very ambitious sales targets, mainly aimed at the US market.
Revenue in FY22 was $8.4m, and revenue in the current financial year, ended March 31, is forecast at NZ$25m, increasing to $73m next financial year.
The company expects to be cashflow positive by the end of FY24.
Those revenue figures are based on sales of just under 2000 units this financial year and projected sales of 8000 next year.
UBCO had previously signalled a public listing within 12 to 24 months, but it says current market conditions and related uncertainty have given rise to more caution about timeframes.
It currently has a pre-money valuation of $88m (before the Series B capital raising), and a share price of 88c after a proposed 1 for 7.3 share split to cover all existing shareholdings and capital notes.
The retail part of the offering is being managed by Snowball Effect, a licensed equity crowdfunding platform. Snowball chief executive Simeon Burnett said the new capital, from new and existing investors, would comprise about a third of UBCO’s restructured shareholding.
“Existing shareholders are participating in the Series B round, including TPK of Taiwan, because of their belief in the bright future of UBCO,” he said.
Burnett said the offer is attracting participation from institutional and retail investors, big and small, from a number of countries, chiefly NZ and the US.
Former UBCO chief executive Katherine Sandford is now chair of the board of directors and the new CEO is Oliver Hutaff, previously chief financial officer.
He will divide his time between NZ and the US and is more able to travel than Sandford, the company said.