E-Cite Motors Eliminates Additional 671,000 Shares Through Debt Reduction, Continuing Aggressive Efforts to Minimize Dilution and Build Shareholder Value

Rhea-AI Summary

E-Cite Motors (OTCID: VAPR) announced on October 7, 2025 that it eliminated approximately 671,000 potential shares by paying down debt tied to a May 13 convertible promissory note, further reducing its share overhang and strengthening its capital structure.

This action complements a recently announced stock lock-up in which over 90% of potential conversions from the largest noteholder were voluntarily locked up, removing tens of millions of shares from near-term conversion risk. The company frames these steps as part of a two-pronged strategy to minimize dilution, instill investor confidence, and position E-Cite to leverage its CARB-approved low-volume EV manufacturer status for faster product delivery and growth.

Positive

• Eliminated approximately 671,000 potential shares via debt paydown
• Largest noteholder locked up over 90% of potential conversions, removing tens of millions of shares from conversion risk
• Management cites strengthened capital structure and reduced share overhang

Negative

• None.

Company Reinforces Commitment to Minimizing Dilution While Leveraging Its Regulatory Advantages Over Traditional OEMs

BOTHELL, WASHINGTON / ACCESS Newswire / October 7, 2025 / Innovative EV Technologies, Inc. dba E-Cite Motors Group, Inc. (OTCID:VAPR), a pioneering low-volume electric vehicle (EV) manufacturer, today announced that it has further eliminated approximately 671,000 additional shares of potential dilution by paying down its debt tied to the Convertible Promissory Note dated May 13. This proactive step further reduces the Company's share overhang, reinforcing its commitment to protecting shareholders while strengthening its capital structure.

This repayment is part of a broader, ongoing initiative by E-Cite to minimize any potential increase to its share structure, instill investor confidence, and maximize shareholder value. By strategically reducing convertible obligations, E-Cite demonstrates that it is building a foundation for sustainable growth while limiting dilution risks that often weigh on early-stage public companies.

This repayment follows E-Cite's recently announced Stock Lock-Up Agreement, under which over 90% of potential conversions were voluntarily locked up by its largest noteholder That milestone eliminated tens of millions of shares from conversion risk and demonstrated a shared commitment between management and its financial partners to protect shareholders and build long-term value.

Taken together, the lock-up agreement and the latest debt paydown represent a two-pronged strategy to minimize dilution, instill investor confidence, and enhance shareholder value while positioning the Company for accelerated growth.

Barry Henthorn, CEO of E-Cite Motors, commented: "Today's announcement is another powerful example of how E-Cite is executing on its promise to protect shareholders and strengthen our foundation for the future. Every reduction in potential dilution increases confidence in our capital structure and creates more value for our investors. We are not only building vehicles that redefine the automotive landscape but also a company that is structurally positioned for long-term success. These actions are the precursors to the great things that lie ahead for E-Cite Motors."

Unlike traditional OEM manufacturers that face decades-old regulatory burdens, bureaucratic structures, and inflexible business models, E-Cite operates under a distinct advantage as a CARB-approved, low-volume EV manufacturer. This exemption status allows E-Cite to design, build, and deliver innovative vehicles without the crushing overhead and inefficiencies of legacy automakers. By leveraging this unique position, E-Cite can move faster, adapt to evolving consumer demands, and bring cutting-edge EV designs to market with speed and efficiency unmatched in the automotive industry.

With its innovative business model, regulatory advantages, and ongoing debt elimination strategy, E-Cite Motors is paving the way for accelerated growth, strategic partnerships, and breakthrough vehicle launches that have the potential to reshape the EV market.

About E-Cite Motors Group (OTCID:VAPR): E-Cite Motors Group is a next-generation electric vehicle manufacturer redefining the American automobile by producing premium EVs that combine timeless design with groundbreaking performance. Unlike traditional automakers, E-Cite employs a modular EV platform that allows for rapid development, high efficiency, and reduced environmental impact. E-Cite's vehicles are developed under a low-volume manufacturing model, enabling the company to bypass certain regulatory hurdles and accelerate delivery of innovative models to consumers. From modernized classic sports cars to record-breaking electric trucks. By combining cutting-edge technology with classic automotive design, E-Cite is redefining what's possible in the EV space. E-Cite is committed to "leading the EV evolution through innovation, agility, and intelligent design". The company is headquartered in Bothell, Washington, and is majority owned by Innovative EV Technologies, Inc.

Contact:

Innovative EV Technologies, Inc. dba E-Cite Motors
Email: ceo@ecitemotors.com
Website: www.ecitemotors.com

SOURCE: Innovative EV Technologies dba E-Cite Motors

View the original press release on ACCESS Newswire

FAQ

What did E-Cite Motors (VAPR) announce on October 7, 2025 about share elimination?

E-Cite said it paid down debt tied to a May 13 convertible note, eliminating about 671,000 potential shares.

How much conversion risk did the VAPR stock lock-up remove and when was it announced?

E-Cite reported that its largest noteholder voluntarily locked up over 90% of potential conversions, removing tens of millions of shares from conversion risk.

How does the 671,000-share reduction affect VAPR shareholders?

The company says the reduction lowers the share overhang and strengthens the capital structure, aiming to reduce dilution risk for shareholders.

What regulatory advantage does E-Cite Motors claim compared to traditional OEMs?

E-Cite notes it is a CARB-approved low-volume EV manufacturer, which it says allows faster design and delivery with lower regulatory overhead.

Is the October 7, 2025 announcement part of a broader VAPR strategy?

Yes; the company describes the debt paydown and the prior lock-up as a two-pronged strategy to minimize dilution and build shareholder value.

Did E-Cite specify future timelines or numerical guidance tied to the share reductions?

No; the announcement describes the actions taken but does not provide future numerical guidance or timelines tied to the reductions.