Singapore-headquartered Geo Energy Resources, through its newly incorporated subsidiary Geo Electric, has entered into a US$4 million loan agreement with Indonesian electric motorcycle company Charged Asia Pte. Ltd (CAPL).
As per this deal, Geo Electric has the right to convert the outstanding amounts and all accrued interest under the loan into ordinary shares of CAPL. The loan carries an interest of 12 per cent per annum for 24 months or until conversion, whichever is earlier.
Furthermore, Geo Energy can enter into further agreements with CAPL to increase its capital investment for up to an additional US$36 million to become the majority shareholder.
CAPL manufactures and distributes “competitive and affordable” electric motorcycles. It has developed three motorcycle models and claims to have delivered more than 1,000 motorcycles in Indonesia, Malaysia, and Vietnam. With a zero-emission production facility in Indonesia, CAPL aims to sell 10 million motorcycles in Asia Pacific over the next ten years.
Also Read: There is talent shortage in the e-motorcycle space in SEA: ION Mobility CEO
The company’s other backers are DeClout Ventures (the corporate VC arm of Exeo Global) and Vmoto (a fully integrated, new energy e-mobility solution provider).
Charles Antonny Melati, Executive Chairman and CEO of Geo Energy, stated: “The group understands that pollution and healthy environment is a growing concern in Indonesia, particularly in Jakarta and Jabodetabek area. Jakarta topped the list as the world’s most polluted city and registers unhealthy air pollution levels nearly every day.”
“After careful deliberation and analysis, the group has decided to expand its business by investing in CAPL. The investment will scale up the group’s financial resilience with the additional stream of revenue and income and contribute to a greener and improved living environment for our future generations,” he added.
To ensure successful execution, the Group will collaborate closely with CAPL to grow its business toward becoming a key player in the EV industry within the Asia Pacific region.
Geo Energy Resources is a major Indonesian coal producer with an established track record in operating coal mines, coal production and selling coal throughout the region.
—
The post Geo Energy inks US$4M loan agreement with Indonesian EV firm Charged Asia appeared first on e27.