ZENN Motor Company
TSX VENTURE : ZNN

ZENN Motor Company

July 06, 2009 15:11 ET

ZENN Motor Company Prices Offering of Common Shares

TORONTO, ONTARIO--(Marketwire - July 6, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES

ZENN Motor Company Inc. ("ZMC" or the "Company") (TSX VENTURE:ZNN) announced today that it has entered into an agency agreement with Paradigm Capital Inc., Thomas Weisel Partners Canada Inc. and Versant Partners Inc. (collectively, the "Agents") in respect of the best efforts offering of common shares contemplated by its preliminary short form prospectus dated June 9, 2009. Under the terms of the agency agreement, the Company will offer a minimum of 2,150,000 and a maximum of 2,860,000 common shares at a price of $3.50 per common share to raise gross proceeds of a minimum of approximately $7.5 million and a maximum of approximately $10 million. The Agents have been granted an over-allotment option for a period of 30 days following the closing of the offering to arrange for the sale at the issue price of up to such number of additional common shares as is equal to 15% of the number of common shares sold under the offering.

The Company anticipates filing a final short form prospectus on July 7, 2009 with closing of the offering currently expected to occur on or about July 14, 2009.

The Company expects to use the net proceeds from the offering, together with existing working capital, to fund product, customer and business development, a final milestone payment to EEStor, Inc. and for operating expenses and general corporate purposes.

This press release does not constitute an offer of the securities described herein in any jurisdiction. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States absent an exemption from registration.

ABOUT ZENN Motor Company Inc.

With Head Office in Toronto, Canada, ZENN Motor Company is dedicated to being the global leader in producing zero emission transportation solutions for markets around the world. The Company's current ZENN car is the perfect vehicle for urban commuters, fleets (such as resorts, gated communities, airports, college and business campuses, municipalities, parks and more), the environmentally conscious driver, and consumers who just want to save money. The ZENN is sold through a growing network of retailers across the United States.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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