Rideshare Rental Inc (OTCMKTS:YAYO), formerly YayYo Inc, announced Tuesday that John Gray, the principal of one of the company's largest shareholders, the Gray Mars Venus Trust, Arizona 2015, has agreed to loan the company $500,000, in exchange for a convertible note.
The Beverly Hills, California-based company said the loan from Gray would finance the company’s growth strategy and be used as working capital.
The note will mature after 12 months and the loan will bear interest at a fixed rate of 6%. If the debt represented by the note is converted by Gray, either in whole or in part, into shares of YAYO stock, those shares will have registration rights, said the company.
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In addition, John O’Neill, a member of the company's board has acquired 100,000 shares of stock. This in addition to his purchase of 135,000 shares in June 2020 after becoming a director, and his prior open market purchases, brings his total shareholdings to 252,100 shares.
In a statement, Gray said: "I have been deeply involved with RSR, including supplying capital to it, since inception. I truly believe this a great company with huge upside and want to support its continuing growth.
“Management has done an extraordinary job of building the company and repositioning it during the COVID-19 pandemic."
Meanwhile, Rideshare Rental CEO Ramy El-Batrawi said he was “pleased” to see the confidence that both the firm’s largest outside stockholder and a member of the RSR board had in the company and its management.
"John Gray and myself are not the only large shareholders who believe in the company and who have confidence in its future prospects,” added El-Batrawi.
“Another large shareholder, Terren Peizer, last year purchased nearly 1.5 million common shares in addition to his IPO stake. I’m delighted to see that members of the RSR board have the same confidence; other directors, including Sidhu Harbant and our board chairman Stephen Sanchez, have purchased common shares in the open market since our IPO."
The company acts through its wholly owned subsidiary, Rideshare Car Rentals LLC, a leading provider of vehicles to the rideshare industry. It provides rental vehicles to drivers in the expanding gig economy. Rideshare Car Rentals, is an online rideshare vehicle booking platform created to service the ridesharing and logistics marketplace, through its owned-fleet vehicles and third party fleet vehicles.
Distinct Cars LLC, its other wholly owned subsidiary, maintains a fleet of vehicles that are commercially available for rent by gig-economy drivers.
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