Elmo Rent looking for new investors again

Elmo Rent.
Elmo Rent. Source: ERR

Estonian electric vehicle rental and remote-driving technology company Elmo Rent is on the hunt for new investors once more. The company promises an annual return of 17 percent.

In an email sent to potential investors, Elmo Rent is offering the chance to invest €2,500 or €4,500 at 17 percent annual rate of return. The average return offered by companies listed on the Nasdaq Baltic exchange is 4.8 percent.

The email reveals that the company is raising funds to satisfy peak season demand for its service. Investors should see their money returned based on sale of older vehicles or working assets from foreign investors, which Elmo Rent is also seeking.

Elmo Rent has raised over €6 million from investors over the last two years.

The company made a loss of more than €1.5 million in 2022 for double what was estimated. Elmo Rent gave as the reason its decision not to launch a taxi service. Instead, the firm worked on developing remote piloting technology and a new app for its rental service.

Elmo Rent's executive manager Enn Laansoo Jr. said that the company is looking for sums to showcase its technology in other countries, hire additional engineers and develop third-generation remote piloting technology.

Laansoo said that the new technology has sparked considerable interest. "We are working on entering three new markets where we can license our technology."

In late 2021, Elmo Rent planned to close 2023 with a profit of more than €590,000. The company's loan burden had grown to over €3 million by the end of 2022.

Elmo Rent has raised:

€2.6 million from growth capital funds between May 2022 and April 2023;

€1.4 million from the second public offering in January 2022;

€374,094 from Enterprise Estonia in December 2021;

€1.9 million from the IPO in June of 2021.

Elmo Rent shares can be traded on Nasdaq Baltic's First North alternative exchange where the company has issued over 2.4 million shares.

The company's June 2021 IPO put the share price at €5, while it has now come down to €1.74.

37 percent of Elmo Rent's shares are owned by Lühirent OÜ and 31 percent by Priit Haljak OÜ.

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Editor: Marcus Turovski

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