On behalf of the Board of Smart Auto Australia Limited (Smart Auto or the
Company), it is my pleasure to invite you to become a shareholder of Smart Auto
on its journey through its next phase of growth and development.
The purpose of the Public Offer is to raise up to $4,200,000 (with a minimum
subscription of $3,000,000) through the issue of up to 42,000,000 Shares (with a
minimum subscription of 30,000,000 Shares) at an issue price of $0.10 per Share.
The proceeds of the Public Offer will be used to enable the Company to:
(a) advance its current bus leasing, management and trading business;
(b) pursue its offshore business development strategy, including targeting
countries such as Australia, Papua New Guinea, New Zealand, Indonesia
and the South Pacific Islands (Target Countries);
(c) enter the electric commercial vehicle (e-CV) market in Australia, while
leveraging its existing commercial offering and experience;
(d) market and promote its existing and proposed activities;
(e) set up multiple offices, branches and showrooms, initially in Australia and
then in the other Target Countries in due course;
(f) develop its software required to run the business, including hardware,
accounting systems and contract management systems, in particular,
internet of vehicles (include a mobile app) which the Group believes will be
a key element in the automotive industry going forward; and
(g) working capital and the expenses of the Public Offer.
The Board believes that the Business permits a unique “go-to-market” strategy that
is highly scalable and also gives the Company a number of opportunities by which
it can generate revenue in the future. These opportunities are set out in more
detail in this Prospectus, including its strategy to enter the e-CV market in Australia
and surrounding Target Countries in due course.
While the Company believes it is well positioned to take advantage of its industry
knowledge and experience, the support of its major suppliers and distributors and
the future trends of the e-CV market (as further set out in Section 7), an investment
in the Company involves a number of risks and must be considered speculative.
The key risks associated with an investment in the Company are set out in Section
10 and should be read and considered in detail. I encourage you to read this
Prospectus carefully before making any investment decision and to consult with
your independent professional advisers in connection with the Public Offer.
On behalf of my fellow Directors, I look forward to welcoming you as a Shareholder
of Smart Auto, and we trust that this document interests you as much as our future
plans excite us.