eResearch | Last week, Last Mile Holdings Ltd. (TSXV:MILE), previously known as OjO Electric Corp. (TSXV: OJO; OTC: AZNVF), changed its name after announcing the completed acquisition of Gotcha Mobility, LLC. The merged company will trade under the ticker “MILE” and will have the broadest product portfolio in the micro-mobility industry.
Last Mile Holdings is a leader in developing safe and sustainable micro-mobility solutions. Before transitioning into Last Mile, OjO Electric was one of the first public companies in the micro-mobility industry after facilitating a reverse take-over last year.
Last Mile Holdings paid a total of US$8.5 million for the acquisition with US$6 million in cash, including US$250,000 upfront and US$5.75 million in deferred promissory notes, and US$2.5 million in shares of the new company.
To facilitate the acquisition, Last Mile Holdings completed a non-brokered private placement of 20.8 million units for total gross proceeds of C$8.3 million at a price of C$0.40 per unit, which consisted of one limited voting share and one purchase warrant exercisable for a period of three years at C$0.60 per share.
The acquisition will merge the expertise of the two company’s management teams while also giving Last Mile Holdings 16,000 additional electric mobility units with fully contracted permits (80% exclusive) by the end of this year, which is expected to rise to 27,000 by the end of 2021.
Gotcha Mobility LLC.
Gotcha has been in the micro-mobility industry for a decade, focusing on niche student-dense towns and municipalities, securing permits for 20,000 of its e-bikes and e-scooters across 80 locations, making it the third largest micro-mobility company in North America after competitors Lime (private; www.li.me) and Bird. (private; www.bird.co).
Currently, Gotcha has partnered up with 34 universities and 42 municipalities in the U.S. for long-term contracts, expanding its micro-mobility reach to 80 locations.
Last year, Gotcha was recognized as one of America’s fastest-growing private companies by Inc. and was a finalist on Fast Company’s 2019 World Changing Ideas Awards in the Health and Wellness category.
Micro-Mobility Industry
According to Goldman Sachs, the ride-sharing market is estimated to grow between US$177 billion to US$492 billion by 2030. Grandview Research did a study on the e-scooter market and valued it at US$17.43 billion in 2018, forecasted to grow to US$41.9 billion by 2030 at a CAGR of 8.5%.
