EVmo Inc (OTCMKTS:YAYO) Stock Falls 7% In a Week: Company Announces Non-Dilutive Financing
Shares of EVmo Inc (OTCMKTS:YAYO) have been under pressure over the past few sessions.
Market Stats
On Thursday, YAYO stock gained 15.74% to $0.4398 with more than 245K shares, compared to its average volume of 257K shares. The stock moved within a range of $0.3950 – 0.4580 after opening trading at $0.3950
EVmo Announces Non-Dilutive Financing to Add 400 Vehicles per Quarter to its Fleet
Leading provider of vehicles to rideshare and delivery gig industry, EVmo Inc (OTCMKTS:YAYO) on March 17 announced developing partners for delivery of $30 Million in vehicle financing. This will add about 400 vehicles quarterly to its Company’s fleet.
The firm has 600 cars on its platform and aims at over 2000 cars within the next 12 months. It is expected to be operationally profitable at about 950 cars and will be cash-flow positive reaching 1600 cars. This is in line with its business plans.
Steven Sanchez, CEO of EVmo said that this is a significant milestone that should drive revenue growth in the next few quarters even as it expands its fleet to meet demand. Sanchez added that financing partners secured will enable adding about 400 new vehicles to the fleet each quarter. The company hopes to double quarterly purchases by the coming year.
The CEO further opined that the financing agreements will facilitate in delivering on the goal of having hybrid and EV options available for drivers in the markets served. EVmo feels that the $13.7 million in gross proceeds from Jan 2022 makes its financial position robust and in a position to execute the business plan. Sanchez further said that the firm has built a robust team and strategic partnership, which is an unmatched combination in the ridesharing and logistics space. Global Market Insights has estimated the ridesharing market in North America was $4.5 billion in 2019. It will grow at a CAGR of 6.5% through 2026.
Key Quote
“This is another major milestone in the evolution of EVmo that should drive accelerated revenue growth in the quarters ahead as we expand our fleet to meet increasing demand,” commented Steven Sanchez, CEO of EVmo. “The financing partners we have secured will enable us to add up to 400 new vehicles to our fleet every quarter for the next year, and we hope to more than double those quarterly purchases in 2023. The vehicles we add through these financing agreements will help us to deliver on our goal of having EV and hybrid options available for our drivers in each market we serve. Together with the $13.7 million in gross proceeds from our January 2022 offering our financial position has never been stronger, and we are in a great position to execute our business plan.”
Traders Corner
YAYO stock is trading below the 20-Day and 50-Day Moving averages of $0.39 and $0.43 respectively. However, the stock is trading above the 200-Day moving average of $1.15.