LAS VEGAS, March 08, 2019 (GLOBE NEWSWIRE) -- 2050 Motors, Inc. (US OTC: ETFM) through the office of CEO Vik Grover released today a shareholder update to provide information to investors on recent developments and planned corporate actions and activity:
Management and Board Changes
Effective March 6, 2019, William Fowler resigned as 2050’s CEO and Director and Bernd Schaefers resigned as Director of the Company. Concurrently with the resignations of Messrs. Fowler and Schaefers, the Company appointed me President, Chief Financial Officer, Secretary and Director. I have over 25 years’ experience on Wall Street as a banker and analyst at technology-focused firms such as Needham & Co. and Thomas Weisel Partners and have previous public company experience in various capacities as a Manager, Director and Consultant.
William Fowler, President of our wholly-owned subsidiary 2050 Motors Private Corporation (TMPC), and his team, by March 15, 2019, will be granted control of TPMC with a goal of allowing TPMC to raise capital from private sources more aligned with the high capital requirements of the electric vehicle (EV) manufacturing business. 2050 Pubco (ETFM) will retain 20% ownership of the subsidiary, which will allow our shareholders to continue to benefit from a planned revitalization of that business. Forces beyond the control of prior management prohibited them from realizing the potential of their early-mover advantage in the EV space. Given recent substantial activity in the EV market, including the IPO of major Chinese manufacturer NIO (NIO/NYSE), the approval of U.S. sales for Chinese manufacturers such as Kandi Technologies (KNDI/NASDAQ)), capital raises by companies based in North America such as Electrameccanica (SOLO/NASDAQ) and Arcimoto (FUV/NASDAQ) , and a shift to 100% online sales of EVs by market leader Tesla (TSLA/NASDAQ), the timing could not be better for TPMC to talk to deep pocketed private investors looking to capitalize on the years of work Mr. Fowler and his team have dedicated to that project and the profound changes in the market for EVs that have occurred. I wish them well and will do everything in my power to help them network with investors and strategic partners in the future. I believe this carve-out was the best outcome for 2050 stakeholders, as it preserves long-term upside and minimizes massive dilution of our shareholder base.
On February 26, 2019, Farber, Hass, Hurley LLP resigned as the Company’s auditor. There were no disagreements about accounting issues. Effective March 7, 2019, 2050 Motors engaged Boyle CPA, LLC as its new accounting firm. The Company is moving aggressively to bring itself into compliance with SEC reporting requirements with a goal of filing form 10-Q for 3Q18 (ended September 30) within 10 business days from today, and a goal of filing form 10-K for calendar year 2018 (ended December 31) by April 15, 2019. We will likely require a 10-day extension to file the 10-K within the SEC’s required timeframe. These actions will eliminate the STOP SIGN for 2050’s common shares and should result in a more orderly and transparent market for investors. I have worked with Robert Boyle’s office in the past, have spoken to him at length about a timeline and the requirements for 2050’s SEC filings, and have the utmost confidence in his firm’s ability to help 2050 get current quickly.
The time to build an EV business is now. There could not be more activity in the space. Industry pioneers like Elon Musk have broken down barriers that for years precluded companies with guts and vision from succeeding in a carbon dominated world. I believe Mr. Fowler and his team were visionaries who simply were too early and who were stymied by forces abroad that were beyond their control. While they work to recharge TPMC, organically and possibly through new ventures, partnerships and other moves, the new 2050 will pursue other growth opportunities in the EV space and related fields.
We are in the “red zone” with regards to a supply agreement with a manufacturer of electric bikes, based in Canada, that has been in business for almost 20 years with sales locations across the country. We intend to launch showrooms for these vehicles, which include eBikes, eScooters, e3wheelers, eATVs, eRickshaws and even eSnowmobiles, and become a master distributor for this manufacturer in select major markets in the USA. This month, we will sign a partnership in New York City to deploy a 4,000 square foot showroom for the Tri-State Area and are reviewing a high-profile location in Chicago for a similar venue targeting the Midwest. Other major markets across the Eastern Seaboard, the Gulf Shores, and possibly Texas are expected to follow while online sales will allow 2050 to target customers anywhere.
The eBike market is wide open for new entrants. For example, New York recently approved new rules for electric bikes, allowing pedal-assist bicycles that require a rider to pedal to activate an electric motor and to keep the bike moving. Bikes favored by delivery workers, known as throttle-controlled electric bikes, that can travel faster than 20 MPH, remain illegal, a decision that has been mocked by thousands of drivers who purchase and ride such machines throughout the city and state and are rarely ticketed. Uber, after buying Jump for $200 million in 2018, launched eBike ride-sharing in the five boroughs, and others like Lyft, who spent $250 million on Motivate in 2018, are testing eBike deployments in anticipation of rules changes by the New York administration and DOT. I expect the substantial lobbying power of Uber and Lyft, further fueled by demand from eBike riders, to change policy in New York. So, you can see, the timing of our showroom launch in New York could not be better, as it will position 2050 to capitalize on a tidal wave of demand for eBikes in this large, landmark market.
2050’s new strategy can be summed up in three phases. Phase I): Bring 2050 current with SEC filings, launch eBike distribution in major markets in the USA, sell and support machines branded and built by our Canadian manufacturer partner; Phase II): Expand into markets East of the Mississippi and in Texas, test market in international locations, white-label our own branded machines for B2C sales; Phase III): launch vehicle sharing/rental services in our core markets to leverage our footprint and capitalize on eBike awareness throughout the country. For now, we will avoid the West Coast, due to hyper competition and the endless money supplied to ride sharing and related businesses by Silicon Valley and venture backed unicorns.
Separately, 2050 is in discussions with M&A candidates in other high growth energy-related fields including Power over Ethernet (PoE) and Light Emitting Diodes (LEDs). We believe there are substantial growth opportunities in these markets that are a play on the global growth of the Internet of Things (IoT). Without going into too much detail, we plan on targeting the network on the road with EVs. PoE and LED will allow us to target the network in the ceiling and the network in the sky. Stay tuned.
Bottom Line: 2050 is entering a new chapter of growth. We have every belief that William Fowler and his team can revitalize TPMC as a private entity, minority-owned by 2050, and bring electric automobiles as planned years ago to the U.S. market. Funding outside of 2050 will allow TPMC to speak to deep pocketed investors that require their investments to be private, and TPMC will be able to deploy substantial capital without massive dilution to 2050’s public shareholders. The “new” 2050 intends to aggressively enter the EV market with a distribution plan for eBikes, delivered by a manufacturer we have targeted and expect to sign this month. M&A in other technology fields have the potential to provide additional long-term upside. I would like to thank shareholders for their continued interest in the Company and look forward to additional updates soon.
About 2050 Motors, Inc.
2050 Motors, Inc. (http://2050motors.com/about-us.html) is a publicly-traded company founded to develop, produce, distribute and sell the next generation of clean, lightweight, efficient vehicles and their associated technologies. Some of these technologies include alternative renewable fuels, hybrid electric vehicles, advanced graphene lithium batteries and low-cost carbon fiber vehicles. Additionally, the Company is exploring next-generation energy technologies, including Power over Ethernet (Poe), Light Emitting Diodes (LEDs), and other substantial, global, high-growth verticals. The Company has been successful in forming long-term relationships and exclusive contracts for a variety of game-changing technologies.
Statements in this press release about our future expectations, including without limitation, the likelihood that 2050 Motors will be able to meet US DOT requirements, meet minimum sales expectations, be successful and profitable in the US market, bring significant value to 2050 Motors' stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
2050 Motors, Inc.