AUSTIN, Texas--(BUSINESS WIRE)--AYRO, Inc., (ayro.com) designer and manufacturer of purpose-built compact, light-duty emissions-free electric vehicles for urban, commercial, consumer and government markets, announces the company’s deployment of vehicles at Princeton University and Penn State University through its strategic partnership with Club Car, Inc. Both Higher-Ed campuses have taken ownership of all-electric Club Car 411 utility trucks built by AYRO, Inc. at its Texas factory.
Colleges and Universities are a great market for electric fleet vehicles like the Club Car 411 plug-in truck. Since 2006, over 600 Universities and Colleges in the U.S. have pledged to reduce their carbon footprint by signing the Climate Action Pledge.
According to the Association for the Advancement of Sustainability in Higher Education (ASSHE), there are over 1,800 colleges and universities in the U.S. that have fleets of at least 400 vehicles. This represents a base of over 535,000 vehicles that are in need of converting over from gas-powered vehicles to electric vehicles. With an average conversion price of $14,000, this represents a potential market of more than $7 billion.
“From the beginning, AYRO has seen the synergy between our purpose-built electric vehicles like the Club Car 411 and campus-based applications,” said Rod Keller, CEO of AYRO, Inc. “The Club Car 411 electric truck is a great option for colleges and universities looking to reduce carbon emissions, operating costs, and increasing access using compact, agile electric vehicles like the 411. Whether the need is for cargo and parcel services, maintenance, food service, logistics, or special events, the Club Car 411’s robust and versatile platform is ready-made for specialized tasks in campus-based environments.”
Penn State University is comprised of 20 undergraduate and four graduate universities throughout Pennsylvania, encompassing nearly 8,000 acres. Princeton University is located in Princeton, NJ on 600 acres.
About Club Car and Ingersoll Rand:
Ingersoll Rand (NYSE:IR) advances the quality of life by creating comfortable, sustainable and efficient environments. Our people and our family of brands – including Club Car®, work together to enhance the quality and comfort of air in homes and buildings; transport and protect food and perishables; and increase industrial productivity and efficiency. We are a $13 billion global business committed to a world of sustainable progress and enduring results. Club Car® has been one of the most respected names in the golf industry for more than half a century and its product portfolio has grown to include much more than golf cars, now encompassing consumer and commercial utility vehicles, multi-passenger shuttle vehicles, rough-terrain and off-road utility vehicles and street legal low-speed vehicles for commercial and consumer markets. For more information, visit www.ingersollrand.com or www.clubcar.com. Club Car is part of Ingersoll Rand, and is based in Augusta, GA.
About AYRO, Inc.
Texas-based AYRO, Inc., (ayro.com), designs and delivers compact, emissions-free electric fleet solutions for use within urban and short-haul markets. Capable of accommodating a broad range of commercial and consumer requirements, AYRO’s vehicles are the emerging leaders of safe, affordable, efficient and sustainable logistical transportation. AYRO was founded in 2017 by entrepreneurs, investors, and executives with a passion to create sustainable urban electric vehicle solutions for Campus Management, Last Mile Delivery, Urban Commuting, and Closed Campus Transport. Discover more about AYRO, Inc. at ayro.com, emailing info@ayro.com or by calling (512) 994-4917.
On December 19, 2019, AYRO entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with DropCar, Inc., a Delaware corporation (“DropCar”) and ABC Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of DropCar (“Merger Sub”), pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into AYRO, with AYRO continuing as a wholly owned subsidiary of DropCar and the surviving corporation of the merger (the “Merger”). In connection with the Merger, DropCar intends to sell substantially all of its current assets, change its name to AYRO and AYRO’s business is intended to become the sole business of the combined company following this transaction.
Forward-Looking Statements
This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made and none of AYRO, DropCar nor their affiliates assume any duty to update forward-looking statements. Words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “may,” “plan,” “will,” “would” and other similar expressions are intended to identify these forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: AYRO has a history of losses and has never been profitable, and AYRO expects to incur additional losses in the future and may never be profitable; the market for AYRO’s products is developing and may not develop as expected; AYRO’s limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; AYRO may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for AYRO’s electric vehicles; the markets in which AYRO operates are highly competitive, and AYRO may not be successful in competing in these industries; AYRO relies on and intends to continue to rely on a single third-party supplier for the sub-assemblies in semi-knocked-down for all of its vehicles; AYRO may become subject to product liability claims, which could harm AYRO’s financial condition and liquidity if AYRO is not able to successfully defend or insure against such claims; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm AYRO’s business; AYRO will be required to raise additional capital to fund its operations, and such capital raising may be costly or difficult to obtain and could dilute AYRO stockholders’ ownership interests, and AYRO’s long term capital requirements are subject to numerous risks; AYRO may fail to comply with environmental and safety laws and regulations; and AYRO is subject to governmental export and import controls that could impair AYRO’s ability to compete in international market due to licensing requirements and subject AYRO to liability if AYRO is not in compliance with applicable laws. Risks and uncertainties related to the Merger that may cause actual results to differ materially from those expressed or implied in any forward-looking statement include, without limitation, risks relating to the completion of the Merger, including the need for stockholder approval and the satisfaction of closing conditions; the anticipated financing to be completed prior to or concurrently with the closing of the Merger; the cash balances of the combined company following the closing of the Merger and the financing; the ability of DropCar to remain listed on the Nasdaq Capital Market; and expected restructuring-related cash outlays, including the timing and amount of those outlays.
Additional Information
In connection with the proposed transaction, DropCar has filed with the SEC a registration statement on Form S-4 that includes a preliminary joint proxy statement of DropCar and consent solicitation statement of AYRO that also constitutes a prospectus of DropCar, and the definitive joint proxy and consent solicit statement/prospectus will be mailed to shareholders of DropCar and AYRO. DropCar and AYRO also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE DEFINITIVE JOINT PROXY AND CONSENT STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the definitive joint proxy and consent solicitation statement/prospectus (if and when it becomes available) and other relevant documents filed by DropCar and AYRO with the SEC at the SEC’s website at www.sec.gov. Copies of the documents filed by DropCar with the SEC are available free of charge on DropCar’s website at www.drop.car or by contacting DropCar Investor Relations at (212) 918-8158.
Participants in the Solicitation
DropCar and AYRO and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. You can find information about DropCar’s executive officers and directors in DropCar’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on April 3, 2019, as amended on April 12, 2019, and the proxy statement for DropCar’s 2019 annual meeting of stockholders, filed with the SEC on November 6, 2019. Additional information regarding the interests of such potential participants will be included in the definitive joint proxy and consent statement/prospectus and other relevant documents filed with the SEC if and when they become available. Investors should read the definitive joint proxy and consent solicitation statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from DropCar or AYRO using the sources indicated above.
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
