An anonymous director reports

LOOPSHARE ACQUIRES LOOP SCOOTER ZONE OPERATOR TO SUPPORT GLOBAL LAUNCH

Loopshare Ltd. has acquired virtually all of the outstanding shares of Loop SAL, the company's first regional LoopZone operator.

Loop has independently operated the e-scooter service in Beirut, Lebanon, since May, 2017, and led the successful launch of the company's first international pilot program. Loop has also played a key role in the technology and business model development of Loopshare's cloud-based, end-to-end micromobility fleet management platform, including the introduction of unique functionality, safety features and fleet management techniques.

Loop has proven out a station-to-station micromobility model that has attracted thousands of Loop subscribers, or "Loopers." This has generated extensive field data that validate Loopshare's high-margin business model, technological advantages, strong brand and superior ease of use, compared with other micromobility offerings.

"As we begin the global launch of our ride-sharing service with the deployment of more than 400 e-scooters in key markets around the world, we believe the unique knowledge and entrepreneurial talent of the Loop SAL operational team will contribute significantly to our success," commented Anwar Sukkarie, Loopshare's president and chief executive officer, who had also been serving as chief executive officer of Loop. "Bringing in this experienced team to assist at the corporate level will help us launch other LoopZone operations around the world."

Earlier this year, Loopshare announced plans to deploy the 400 e-scooters across at least eight cities internationally, including four in the United States, beginning in the second quarter of 2019. It recently initiated a new partnership with GreenMo, a European market leader in electric vehicle rentals, with plans to launch a pilot deployment of 55 Loop e-scooters in the Netherlands. The team from Loop is expected to assist in the development of the GreenMo partnership, given its proximity to Europe.

Loop has become a subsidiary of Loopshare in an all-equity transaction. The acquisition includes 153 Loop scooters (110 on order and fully paid), five highly trained employees and support equipment. It plans to expand its regional fleet with an additional 500 scooters over the next 12 to 18 months to meet current demand targets.

"This strategic acquisition also immediately expands our revenue stream from these operations from 30 per cent to 100 per cent and was completed at an opportune time," continued Mr. Sukkarie. "Given Loop SAL's anticipated near-term deployment of 110 additional scooters to meet growing demand, we see the scale-up turning Loop SAL profitable within 12 months of operation.

"Combined with the other scooters we plan to deploy from the 400-scooter order we announced in February, we've set the stage for a significant ramp-up in revenues from multiple cities over the next several months, and this is just the start."

Loopshare looks to take advantage of the phenomenal growth of the global ride-sharing market. According to MarketsandMarkets, the market is growing at a compounded annual growth rate of nearly 20 per cent and will reach $218-billion (U.S.) by 2025. Key market drivers include: the growing need for personal mobility in the wake of rising urbanization; falling car ownership; growing smart phone usage; and stringent carbon dioxide reduction targets.

Transaction terms

In return for an effective 100-per-cent ownership and control of Loop, Loopshare issued 8,424,943 Class A common shares as a result of the cashless exercise of pre-existing warrants by a 40-per-cent independent shareholder and investor in Loop. These shares are subject to an escrow agreement, with incremental releases over a 36-month period. Mr. Sukkarie transferred his 59.995-per-cent ownership interest in Loop to Loopshare for a nominal amount ($1 (U.S.)), as previously stipulated in the warrant terms. The remaining 0.005 per cent of Loop continues to be owned by an independent director of Loop, as required by Lebanese law for companies domiciled in the country. Further details about the warrants are available in the management's discussion and analysis for the nine-month period ended Sept. 30, 2018, and filed on SEDAR on Nov. 26, 2018.

About Loopshare Ltd.

Loopshare is an emerging global leader in ride-sharing, micromobility and sustainable transportation. Through its wholly owned subsidiary, Saturna Green Systems Inc., it has commercialized a first-generation, wireless ruggedized seven-inch touch screen dashboard with telematics functionality for electric inner-city vehicles. Loopshare's highly specialized display enables a broad range of services for consumer, tourism or commercial use.

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