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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2015
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

NOTE 12- SUBSEQUENT EVENTS

 

Roy Fung has resigned as CFO of ZAP and Jonway due to personal reasons as of April 15th, 2015. Michael Ringstad steps in as interim CFO of ZAP and Jonway, while ZAP and Jonway Auto seeks replacement of the CFO.

 

Jonway Auto is currently considering a 3rd board listing in Shenzhen, China.  The objective is to have an additional source for raising the required funding for working capital.  In considering the 3rd board listing, Jonway Auto will work with local stock agents in China who will facilitate the process of registration for the 3rd board listing.  Upon listing on the 3rd board, Jonway Auto would be able to market Jonway Auto's shares in China's public market to raise capital. The target is to get on the 3rd board and complete the process of registration before the end of the year.

 

In preparation for the 3rd board listing, ZAP plans to appoint two new independent directors to its board upon the resignation of two Cathaya board members.  The two new proposed directors are Ms. Tian Ming and Otto Bai.

 

Ms. Tian Ming is currently CEO of Bling Bling Health Center, and formerly Group VP of FAB Enterprise Group in China, with FAB Group being the largest AV chain store group in China with 22 years history and over 806 chain stores throughout China.  Ms. Tian received MBA from School of Economics and Management at Tsinghua University, and is the Chairman of Tsinghua MBA Student Union and received Tsinghua SEM Comprehensive Scholarship (First Place) and Teaching Award.  Ms. Tian brings to the Company extensive business and financial experience in China, and can provide advice on the pending plans to list Jonway Auto in China.

 

Mr.  Otto Bai's background is also business and finance and is a Partner at Unicorn Insights Consulting in Beijing.  Mr. Bai provides consulting for international companies in China, supporting business development and consumer and business commerce for international companies.

 

These two new proposed independent directors will be appointed to replace Goman Chong who will step down May 30, 2015 and Dr. Priscilla Lu who will become Chairman Emeritus.  The Chairman position will be assigned to Alex Wang (Wang Gang) who will take over from Dr. Lu.  Dr. Lu will remain actively supporting the transition over a period of time to  bring on board the independent directors and to hand over the Chairmanship position to Wang Gang,  Ms. Tian and Mr. Bai will also be appointed to the Audit Committee as the replacement directors.

 

Effective April 30, 2015, the Company and Korea Yung amended their original agreement, dated August 12, 2014, to the Yung convertible bond.  Under the amendment, the minimum share price at which Ms. Yung is able to sell the stock issued to her was revised from the price at which Ms. Yung was originally issued the stock from $0.085 to $.07 per share.