UBCO electric bikes has begun to raise another US$15 million (about $23.8m) of capital from wholesale investors by way of a convertible note bridging round.
The bridging round is ahead of a possible initial public offering the Tauranga-based unlisted company is considering for 12-18 months’ time. If it comes to pass, convertible notes will earn interest and then convert into fully paid shares.
There have been previous capital raisings and the current share registry is diverse and multinational.
UBCO has grand plans for development in lightweight electric adventure vehicles, to extend its current 2X2 adventure and work bikes, many of them used on New Zealand farms.
In the information memorandum, financial projections include $8m of sales revenue achieved this financial year, quadrupling to $32m in FY23 and leaping to $150m in FY24.
In terms of annual sales units the progression is 1100, rising to 4000, and then to 17,500.
The company now has 100 staff members, half in Tauranga and half overseas in the United States, Australia and Europe.
It is selling the fifth generation of the 2X2 with a 20% better motor efficiency, optional solar chargeable power supply and strengthened frame.
Since the company launch in 2015 sales have exceeded 3000 units.
The second vehicle for UBCO will be a Sage (FRX1) trail bike followed by a four-wheel vehicle.
It is also developing an intelligent platform for the motor controllers, for authenticating users, data collection, battery health and charge, service diagnostics and fleet management, accessible from a mobile app for the bike owners.
Since the previous capital raising of $10m, in 2021, UBCO has entered a strategic partnership with TPK Holdings of Taiwan, an electric component manufacturing company.
The TPK connection will enable UBCO to scale up from batch manufacturing to rolling production of hundreds or thousands of units.
It has an order for 1500 bikes from Tucker Powersports in the US to be delivered by March next year.
More than 20 dealers have been signed in the US and UBCO intends to grow that type of outlet ten-fold.
In the US the base prices for UBCO bikes are $6000 to $7000. In NZ the range is $7500 to $8000.
A sales hub has been established in London, and UBCO participated in Prime Minister Jacinda Ardern’s trade delegation there in late June, early July.
Interested wholesale investors can register through Syndex Exchange and the Snowball Effect fundraising websites with a $5000 minimum.