Oxnard, California and Vancouver, British Columbia – November 19, 2019 – OjO Electric Corp. (the “Company” or “OjO”) (TSXV: OJO; OTC: AZNVF) is pleased to announce that it has entered into a binding letter of intent (the “LOI”) with Gotcha Mobility, LLC (“Gotcha”) pursuant to which OjO will acquire 100% of the equity of Gotcha (the “Acquisition”) in a transformational combination for both companies.
Highlights:
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- The combined company unites two experienced, forward-thinking teams and equips OjO with immediate access to Gotcha’s portfolio of exclusive long-term contracts with 35 universities and 42 municipalities across the U.S.
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- Exponentially expands OjO’s growth pipeline to a total of 80 locations – the largest micro-mobility footprint in North America after Lime and Bird – and planned base case operations totaling approximately 25,000 mobility units by YE-2020
- Acquisition provides a clear path to large-scale deployment of OjO’s custom-engineered seated scooter, with best-in-class unit economics, while expanding OjO’s product offerings to include pedal bikes, e-bikes, e-scooters, and e-trikes
The Acquisition is the first step in OjO’s accretive capital deployment and consolidation strategy in the micro-mobility sector. The combined OjO-Gotcha footprint and pipeline provide a substantial near-term growth opportunity and positions OjO as the leading industry consolidator. With a planned 2020 base case of deploying 25,000 mobility units across 80 locations in the Company’s rideshare and on-demand delivery businesses, OjO is building the scale and partnership-oriented market approach to play a leadership role in the sector.
Founded in 2009 by CEO Sean Flood, Gotcha has established deep and long-standing relationships in the mobility sector. The company has more than 10 years of operations experience and 100 shared e-mobility partners across the U.S. Gotcha was recognized as one of America’s fastest-growing private companies in 2018 and 2019 on the Inc. 5000 list. It was also a finalist on Fast Company’s 2019 World Changing Ideas Awards in the Health and Wellness category for providing students with sustainable micro-transit products that encourage healthy lifestyles.
“We’re excited to share the news of our acquisition of Gotcha. We did extensive homework to find the right partner to expand our presence while joining our mission to change rideshare for good,” said Max Smith, Chief Executive Officer of OjO. “The exclusive nature of Gotcha’s expansive portfolio of long-term contracts is particularly attractive. The markets where we have experienced the best unit economics are those that have taken the approach of limiting permits to a handful of operators, as compared to those where scooter deployments have been more of a free-for-all. Gotcha’s strong corporate culture and experienced team make the company a perfect match for OjO.”
“We are excited about Gotcha’s next chapter as we merge with OjO,” said Sean Flood, Chief Executive Officer of Gotcha. “Our shared visions and goals make this a great fit. We look forward to continued growth as we lead the micro-transit industry together. Gotcha’s experience, suite of products, and exclusive contract base—combined with the OjO’s products and positive unit economics—will build a powerful team to grow together.”
Both companies are committed to disciplined, thoughtful deployments of micro-mobility solutions which show respect for city planning and infrastructure and make public safety a top priority. Furthermore, both companies use a partnership-first approach when entering new cities, sourcing local partners with established infrastructure before deploying mobility units.
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Media Contacts:
OjO:
Email: investors@ojoelectric.com
Phone: +1-877-557-1053 ext. 116
Gotcha:
Caroline Passe, Director of Public Relations
Email: cpasse@ridegotcha.com
Phone: 1-843-225-7024
About OjO Electric Corp.
OjO Electric Corp. (TSXV: OJO) is dedicated to providing safe, sustainable Light Electric Vehicle (LEV) mobility solutions in collaboration with municipal governments to reduce traffic congestion and carbon emissions. OjO’s vision is to change rideshare for good by creating a sustainable mobility eco-system that connects people, cities, and businesses. OjO’s platform is built with open APIs to allow for integration with partners and multi-modal transportation solutions. To find out more, please download the OjO mobile app or visit www.ojoelectric.com.
About Gotcha Mobility, LLC
Gotcha is an e-mobility company dedicated to providing innovative shared mobility products and technologies that get people out of single-occupancy cars and safely onto efficient, sustainable electric mobility products. The company operates e-bikes, e-scooters, and e-trikes as transportation solutions tailored to cities and universities across the U.S. Gotcha empowers communities to lead happier, more productive lives through the transformative power of affordable, accessible micro-transit. For more information, visit www.ridegotcha.com.
[1] Based on management’s review of location information disclosed on competitor scooter rideshare company websites.
Gotcha is a sponsor of DIG SOUTH Tech Summit.
