Investment Highlights

• Creators of patented, digitally-connected electric utility bike.
• $1.8m raised in the current round so far from new and existing investors.
• Initial sales commenced in NZ and Aus this year, with sales due to commence across Europe and US next year.
• Existing NZ business customers ranging from tourism industry to conservation.
• On-road version of bike due in market next year.

Ubco – An Electric Utility Vehicle

The Ubco 2x2 is a dual electric drive utility bike that transforms the way you ride, work and play outdoors.

Over one million plug-in electric cars, over five million electric scooters and motorcycles and an estimated 40 million e-bicycles were sold worldwide last year. Still a fraction of all global vehicle sales.

The Utility Bike Company (Ubco) was founded in 2015 to exploit the opportunity to create a utility electric vehicle (UEV). Ubco drew inspiration from the classic Honda CT110/CX90 (Trail Bike) in combination with the latest e-bike technology. By creating a two-wheel drive utility bike (2x2), Ubco has created a new product category.

Due to its focus on function and simplicity, Ubco has attracted interest as both a work and recreational vehicle in a variety of applications. The 2x2 was launched as an off road UEV for speed to market. Building a customer base and a greater understanding of it is use and applications. Ubco are now well advanced on delivering the Road Legal certified version of the 2x2 significantly expanding the market potential and size in all markets.

The 2x2 brings portable energy to the market with a high capacity 40 Ah lithium battery that can also power mobile electronics and cordless power tools while you’re on the go. The frame’s unique design has 17 lugs on it to enable the attachment of accessories from panniers, cargo racks to gun racks for hunting.

This digitally connected bike will record where it is, and track its performance. Individual customers can adjust the settings of their bike and monitor battery, speed and location. In addition, for fleet customers there are a wide range of management, security, and health and safety features that integrate well into the modern work environment.

Ubco has a multi-channel approach to sales covering:

• Direct to Consumer (e-commerce)
• Urban (dealer)
• Rural (dealer)
• Direct B2B (fleet)

Ubco has created a compelling brand with strong focus on digital marketing in conjunction with physical demonstrations and events.

The Ubco supply chain is certified for on-road production to meet projected volumes and for distribution. Ubco has created a simple distribution approach with 3 boxes (Frame, Wheels, Battery) all under 20kg to enable flexible shipping anywhere.

Sales commenced this year, and with over 100 units sold to date across New Zealand and Australia Ubco are on track to hit this year’s forecasts. Ubco bike fleets are currently utilised in a range of domains including NZ’s Department of Conservation and tourism company, Real Journeys. Work has commenced on export markets outside of Australasia, with the UK and US being the initial focus, and with the introduction of a road legal version of the bike on the horizon, Ubco expect to see significant growth in international sales across the next three years.

Ubco has already raised over $1.8m in this current capital raising round from angel and private investors, and is now accepting over-subscriptions of up to ~$1.1m for a round of $3m. Capital raised in this round will be used towards product development, inventory growth, key hires and market development in New Zealand, Australia, North America, Europe and other territories.

Ubco plan to build an enthusiastic and active community of more than 25,000 users by the end of 2020. This is an opportunity for New Zealand investors to join Ubco as they build this user base around the world, creating a truly global technology brand.

The Ubco Business Model

Ubco’s business model leverages the 2x2 (on and off-road) as a product platform that delivers a rich customer experience through the addition of portable power, subscription software and accessories. Enhancing what the 2x2 can provide both businesses and individual customers.

2x2 (on-road/off-road)

The base platform is an off-road dual electric drive bike that will be certified road legal for a wide range of applications. Ubco will develop a wide range of colours and finishes over time to cater to the wider range of applications and consumer tastes.

Portable power

Being able to access a silent powerbank of over 3kW for any appliance or tool (up to 3000w peak rated) that can be carried in a bike and be charged off solar, the 2x2's portable power system delivers an exciting new product for Ubco customers with applications in both recreation and work environments.

Digital Connectivity

This digitally connected bike enables over the air updates, remote diagnostics, user bike control (speed, acceleration), location awareness, security (electronic immobilisation) through to full fleet management, delivering improved health and safety in a work and recreational environment.

Accessories

The accessories develop the bikes utility for different customers: cargo racks are great for a dairy farmer or horticulturalist, gun racks and the convertible backpack pannier for hunters, while the general accessory attachment pack is perfect for the DIY person that just wants to make their own additions to the bike. Combinations of accessories can be put together for fleet sales to meet the specific task requirements.

"Real Journeys were impressed with the simplicity, functionality and silent running of the Ubco 2x2. They are refreshingly good fun to ride. We envisaged a guided visitor experience involving the 2x2 on some new trails on our land at Walter Peak as adding nicely to our existing visitor options. Silent running gear on some outstanding rolling hill country with great lake views all seemed to fit the bill. We are proud to be associated with UBCO and supporting Kiwi innovation". Tony McQuilkin - Real Journeys

Investor Rewards

Ubco is excited to offer Snowball Effect Investors the following rewards alongside your investment:

Investments $20,000 - $99,999

Investors will be provided a discount coupon that allows for one Ubco 2x2 to be purchased from the Ubco website at wholesale price.

Investments $100,000+

Investors will be receive a complimentary Ubco 2x2 with free delivery anywhere in New Zealand.

These rewards are personal to Snowball Effect investors and are non-transferable. Rewards are only available to New Zealand residents.

Notes on Investment

Nominee Shareholding Structure

The shares that will be issued by Ubco Bikes will be issued to Snowball Nominees Limited (“Nominee”). The Nominee will hold the legal title to the shares, which will be held on trust for the beneficial owner of the shares (i.e. the Snowball investor). The full terms on which the Nominee will hold the shares are set out in the Nominee Deed Poll (refer to the offer documents).

The Nominee must:

• Act in accordance with the beneficial owner’s instructions (e.g. in exercising the voting rights attached to the shares);
• Account to the beneficial owner for the amounts it receives from the shares (e.g. payment of dividends); and
• Deliver the notices, documents, reports and other communications that it receives to the beneficial owner.

The beneficial owner must pay for the shares and is liable for any other obligations that arise in relation to the shares. Under the Nominee Deed Poll, the beneficial owner indemnifies the Nominee against any costs or claims that the Nominee incurs as a result of holding the shares (unless the Nominee has been fraudulent or grossly negligent).

There are other shareholders held in nominee entities from both the previous capital raising rounds.