MIAMI - EzFill Holdings Inc. (NASDAQ: EZFL), a prominent mobile fueling company, announced its plans to acquire the fueling division of Yoshi, Inc., expanding its operational reach into California, Tennessee, Texas, and Michigan. This strategic move is expected to enhance EzFill's footprint in the U.S. and propel its national expansion efforts in the on-demand fueling sector.
The acquisition, structured through a non-binding Letter of Intent (LOI), will see EzFill integrate Yoshi Mobility's assets, field technicians, and customer base into its existing infrastructure. While the financial terms of the transaction have not been disclosed, the acquisition is subject to customary closing conditions and is anticipated to be completed by the year's end.
Yoshi Mobility, based in Nashville, Tennessee, is recognized for its mobile fueling services and has been backed by heavyweight investors such as General Motors (NYSE:GM) Ventures, ExxonMobil (NYSE:XOM), and Bridgestone Americas. The company has established a significant presence in the mobile fueling industry, having raised more than $60 million from various investors.
EzFill's CEO, Yehuda Levy, remarked on the acquisition as a significant step in revolutionizing mobile fueling services across the country. "With Yoshi, we gain access to new markets, fantastic field technicians, and a loyal customer base, allowing us to scale our operations and provide exceptional fueling services nationwide," Levy stated.
Avi Vaknin, EzFill's Chief Technology Officer, expressed confidence in the company's technology platform to facilitate a smooth expansion into other states using Yoshi's existing fleet of trucks. This integration is expected to enable EzFill to maintain its service and efficiency standards while scaling operations.
Bryan Frist, CEO and Co-Founder of Yoshi Mobility, sees the transition as beneficial for both companies and customers, allowing Yoshi Mobility to focus on developing advanced mobility solutions such as EV charging and virtual vehicle inspections.
EzFill, headquartered in Miami, offers on-demand mobile fueling services that deliver fuel directly to consumers and businesses, offering an alternative to traditional gas stations. The acquisition of Yoshi's fueling division is aligned with EzFill's commitment to providing convenient, cost-effective, and eco-friendly mobile fueling solutions.
This news is based on a press release statement and reflects the company's current plans and expectations for future business strategies and operations.
In other recent news, EzFill Holdings Inc. has undergone significant financial developments. The company has revised its agreement with NextNRG Holding Corp. shareholders, increasing the total shares to be issued from 40 million to 100 million. The new terms determine that 25 to 50 million shares will vest at the deal's closing, with the remainder subject to vesting conditions.
EzFill has also regained compliance with Nasdaq's equity rule through strategic financial maneuvers, including converting approximately $13.5 million of its debt into equity through agreements with NextNRG Holding Corp and AJB Capital Investments. This has helped increase the company's cash reserves and should eliminate around $1.2 million in annual interest expenses.
The company secured a $165,000 promissory note with NextNRG to bolster its working capital. The note carries an 8% annual interest rate for the initial nine months, escalating to 18% thereafter. In the case of a default, NextNRG has the option to demand immediate payment of 150% of the outstanding balance or convert the debt into EzFill's common stock.
In terms of revenue, EzFill announced record-breaking revenues for April, reaching approximately $2.6 million, a 32% increase from the previous year, and a net loss reduction by 69%. These recent developments continue to shape the financial trajectory of EzFill. Notably, the relationship with NextNRG and its CEO, Michael Farkas, continues to foster a financial relationship between the two entities.
InvestingPro Insights
As EzFill Holdings Inc. (NASDAQ: EZFL) moves forward with its acquisition plans, investors should consider some key financial metrics and insights from InvestingPro. Despite the company's ambitious expansion strategy, EzFill faces significant financial challenges that could impact its growth trajectory.
According to InvestingPro data, EzFill's market capitalization stands at a modest $16.21 million, reflecting its current position as a small-cap company in the mobile fueling sector. The company has shown strong revenue growth, with a 27.26% increase in the last twelve months as of Q2 2024, aligning with its expansion efforts. This growth is further supported by an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
However, EzFill's financial health presents some concerns. The company is not profitable over the last twelve months, with a negative P/E ratio of -1.49. Its gross profit margin is a slim 6.72%, which an InvestingPro Tip describes as "weak gross profit margins." Additionally, EzFill is "quickly burning through cash," which could be a critical factor as it pursues its acquisition strategy.
The stock's performance has been challenging, with a significant 57.37% decline over the past six months. This aligns with another InvestingPro Tip noting that the "stock has taken a big hit over the last six months." Investors should be aware that EzFill's stock price "often moves in the opposite direction of the market," which could present both risks and opportunities.
For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for EzFill, providing a deeper understanding of the company's financial position and market performance.
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