Toronto, Ontario--(Newsfile Corp. - June 5, 2024) - New World Solutions Inc. (CSE: NEWS) (OTC Pink: REGRF) (FSE: RT5) ("NEWS" or "New World" or the "Company") is pleased to announce that the Company has entered into an amended and restated share exchange agreement dated June 4, 2024 (the "Agreement") with Panyo AI Technologies Inc. ("Panyo"), a private British Columbia company, and the shareholders of Panyo (the "Shareholders") to acquire 100% of the issued and outstanding shares in the capital of Panyo (the "Panyo Shares")(the "Transaction"). The Agreement supersedes the original share exchange agreement entered into by the Company, Panyo and the Shareholders on May 27, 2024. The Transaction will add five more vehicles of Panyo to the Company's existing EV fleet which currently generates approximately net income of $2,000 per vehicle per month after rental platform costs of approximately $667 per vehicle per month.
"The acquisition of Panyo is a strategic addition to our portfolio, broadening our scope in the electric vehicle sector. We recognize the potential of the EV rental market and look forward to integrating Panyo's operations within our business framework," said Paul Haber, CEO of the Company.
Transaction Terms
Pursuant to the terms and conditions of the Agreement, in consideration for 100% of the issued and outstanding Panyo Shares, the Company will pay $400,000 by way of issuing 20,000,000 units (the "Units") with each unit consisting of one common share of the Company (the "Common Shares") and one Common Share purchase warrant (the "Warrants") to the Shareholders on a pro rata basis. Each Warrant will entitle the holder thereof to acquire one additional Common Share at a price of $0.05 per Common Share for two years from the date of issuance.
The Units will be subject to a hold period under applicable securities laws of four months and a day from the date of issuance.
The Company is at arm's length from Panyo and each of the Shareholders. Upon completion of the Transaction, Panyo's board of directors will be comprised of nominees of Panyo. No change in management or board of directors of the Company is currently contemplated.
The Transaction does not constitute a Fundamental Change nor is it expected to result in a change of control or Change of Business of the Company, within the meaning of applicable securities laws and the Policies of the Canadian Securities Exchange (the "CSE").