GreenAngel Energy Corporation announced today that they have entered into a Memorandum of Understanding with Rapid Electric Vehicles Inc. (REV) to raise up to $5 Million in several tranches during 2010.
Under the terms of the MOU, GreenAngel will raise capital for REV using a special purpose Venture Capital Corporation as defined under the B.C. Small Business Venture Capital Act, namely REV Technologies (VCC) Inc. B.C. investors can receive a 30% refundable tax credit and also hold their shares within an RRSP or TFSA account for further tax deductions.
According to GreenAngel CEO Michael Volker, using a VCC to offer shares will allow REV to attract a much broader base of investors rather than limiting itself to angel investors as it has in the past (REV CEO Jay Giraud presented last week at the Canadian Financing Forum). In additon, the use of the 30% Provincial Tax credits and the Federal RRSP deduction will give investors substantial leverage and reduce their at-risk capital outlay.
REV will be hosting a number of investor presentations over the coming weeks and shouldn’t have much trouble attracting investors for the first tranche with a full month until the 2009 RRSP contribution deadline.
REV will use the proceeds to continue the development and commercialization of its MDS technology – modular drive and energy storage systems – that transform a wide variety of automotive platforms into zero-emission, 100% electric vehicles. Its initial market thrust is the electrification of SUV and half-ton pickup trucks typically used in commercial fleet operations.
GreenAngel presently holds a 7% equity interest in REV.