SOURCE: EVCARCO

EVCARCO

May 10, 2011 09:00 ET

EVCARCO, Inc. Signs $10 Million Funding Commitment With Auctus Private Equity Fund, LLC

FORT WORTH, TX--(Marketwire - May 10, 2011) - EVCARCO, Inc. (OTCBB: EVCA) (OTCQB: EVCA) announced today that it has signed a $10 Million drawdown equity financing agreement with Boston based Auctus Private Equity Fund, LLC ("Auctus").

Mack Sanders, CEO of EVCARCO, stated, "We are pleased to have signed this funding agreement with Auctus, which provides the Company with future flexibility and will help us with dealership acquisitions, operations and general corporate use."

Nickolay Frolov, CFO of EVCARCO, remarked, "The Auctus Agreement requires the Company to file for fewer shares and should have a gradual effect on our share structure due to the 36 month term. The Company is also looking at several smaller debt financing packages from other firms and financiers to help leverage the Company's need for funding and growth."

There are no upper limits to the price Auctus may pay to purchase EVCARCO's common stock and the purchase price of the shares related to the $10 Million of future funding will be based on 93% of the lowest trade (closing) price during the pricing period as outlined in the Agreement. The Company will control the timing and amount of any sales of shares to Auctus. There are no financial or business covenants, restrictions on future funding, rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement. The Agreement may be terminated by the Company at any time, at its sole discretion, without any cost or penalty.

A more detailed description of the Agreement is set forth in the Company's Current Report on Form 8-K recently filed with the SEC.

For more information on EVCARCO, Inc., please view: www.evcarco.com. Shareholder inquiries should be directed to (972) 571-1624.

EVCARCO Inc. is the first automotive retail group dedicated to deploying a coast-to-coast network of environmentally friendly franchised dealerships and vehicles. EVCARCO is bringing to market the most advanced clean technologies available in plug-in electric, alternative fuel, and pre-owned hybrid vehicles from multiple manufactures. EVCARCO - Future Driven ®

This Press Release contains certain forward-looking statements that involve substantial risks and uncertainties, including, but not limited to, the results of ongoing clinical studies, economic conditions, product and technology development, production efficiencies, product demand, competitive products, competitive environment, successful testing and government regulatory issues. Additional risks are identified in the company's filings made with the Securities and Exchange Commission.

Contact Information

  • Investor Relations Contact:

    Jack Eversull
    The Eversull Group, Inc.
    972-571-1624
    214-469-2361 fax
    Email Contact