E-Cite Motors Group, (OTC PINK:VAPR) announced that has begun paying off and/or cancelling old notes to strengthen the balance sheet and reduce potential dilution.
Specifically, E-Cite cancelled four old notes totaling approximately $140,000. These notes have long passed any statute of limitations, are not collectible under Nevada State law, and no attempts to collect have been made. The reduction in debt is expected to be reflected in the Company’s upcoming financials.
In addition, E-Cite paid its oldest convertible note for $4,770 in cash that could have converted into 954,000 shares as part of its commitment to pay off convertible notes as cash becomes available.
Barry Henthorn E-Cite CEO stated: “E-Cite is committed to doing all that we can to reduce any potential dilution and to clean up our balance sheet. The reduction of debt will have a noticeable impact on our financials and in maintaining as tight of share structure as possible.”
E-Cite was the first company to get any vehicle approved by the National Highway Traffic Safety Administration (NHTSA) under the Low Volume Manufacturers Act of which is has three distinctly different vehicles approved. This allows E-Cite to produce its own VINs for the production of new vehicles. In addition, E-Cite was the first to receive a World Manufactures Identifier (WMI) under the Act registering it as a manufacture for the sale of vehicles worldwide.
As this is the first time in history that a manufacture has reached the point of applying for certification from CARB under the Act, and there was no process in place to do so, E-Cite is working closely with CARB while they define the process, paving the way for future vehicles to go through the certification process.