Zap announces $2 million private placement

Santa Rosa electric vehicle manufacturer Zap said it will receive a $2 million private investment from an Oakland investment firm in exchange for 8 million shares of its common stock ? equivalent to 25 cents per share.

Zap stock closed at 37 cents a share Thursday, up 4 cents in over-the-counter trading. Over the last year, it has traded between 9 cents and 92 cents a share.

The company intends to use the investment from Banks Group LLC for general and administrative costs and to pursue research and development in electric vehicles.

The money will be released in stages through the end of 2010, according to a news release issued Thursday by Zap.

Last month, Zap reported it lost $2 million in the first quarter on revenues of $1 million.