ZAP announced today that it has concluded an agreement for a $425 million revolving financing facility with Surge Capital II, LLC that could be used to import SMART cars and other advanced transportation vehicles for its dealers.

This new facility would give ZAP the ability to start fulfilling purchase orders it has already received for SMART cars that will be modified to meet United States environmental and safety standards using proprietary conversion technology that has been licensed to ZAP. The facility may also be used for the importation of other brands of fuel-efficient vehicles from global manufacturers that would be distributed through ZAP's dealer network. The financing facility has a term of one year, but may be extended upon agreement by both parties. The financing is based on orders ZAP receives from dealers who must be approved in advance by Surge Capital and is secured by a first lien on substantially all of ZAP's assets.

ZAP, a publicly traded company listed on the ArcaEx Exchange, is a pioneer in providing advanced, fuel-efficient vehicles with proven and reliable technology to American drivers and consumers. The company recently announced the first deliveries of SMART Cars modified by ZAP to dealers in eight states as well as the beginning of its dealer service training and certification program.

Surge Capital, ZAP's financing partner in this transaction, and its affiliates are private investment funds headquartered in Northbrook, Illinois. The firm specializes in trade and inventory finance transactions where clients are able to obtain substantial funding beyond traditional financing guidelines in order to fulfill purchase orders.