Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $106 MCAD
Stock price at time of publication: $ 3 CAD
Target price: 15-32 CAD by external analysts
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Lion Electric Market cap 1.9 billion USD
Website: https://vicinitymotorcorp.com/
ESGFIRE comment: Vicinity Motors yesterday (24/3) announced a direct offering of 12 MUSD. The market reaction was understandably quite brutal since the offering was given at a heavily discounted price. We were also dissapointed by the terms given in the offering however it’s most likely an effect of the very difficult financing climate environment for growth companies right now. We would of liked to see that the offer was also made available for current shareholders. On a positive side note the financing will enable Vicinity to finish their washington factory and deliver on their 100 million order backlog. We continue to see an upside in Vicinity Motors shares as the company is now valued at less than 1X sales for 2022 and has target prices of 15-32 CAD by external analysts.
Press release in full below:
VANCOUVER, BC (March 24, 2022) Vicinity Motor Corp. (TSXV: VMC) (NASDAQ: VEV) (FRA: 6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced it has entered into definitive agreements with institutional and accredited investors for the purchase and sale of 4,444,445 common shares and warrants to purchase up to 4,444,445 common shares (together, a “Unit”) at a combined purchase price of US$2.70 per Unit in a registered direct offering for gross proceeds of approximately US$12 million, before deducting placement agent fees and expenses. The warrants will be exercisable 6 months from the closing of the offering (the “Initial Exercise Date”) at an exercise price of US$3.36 per common share and will expire three (3) years from the Initial Exercise Date. The closing of the offering is expected to occur on or about March 28, 2022, subject to the satisfaction of customary closing conditions.
Vicinity Motor Corp. intends to use the proceeds for to complete the Company’s manufacturing facility in Ferndale, Washington.
A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
The offering is being made in the United States only under the Company’s amended and restated short form base shelf prospectus dated April 19, 2021 (the “Base Shelf Prospectus”), filed with the securities regulatory authorities in Canada, and included in the corresponding registration statement on Form F-10 (the “Registration Statement”) filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) under the U.S./Canada Multijurisdictional Disclosure System (“MJDS”). The Company will file a prospectus supplement (the “Supplement”) to the Base Shelf Prospectus with the applicable securities regulatory authorities in Canada. The Supplement will also be filed with the SEC as a prospectus supplement to the Base Shelf Prospectus included in the Registration Statement. Copies of the Supplement, including the Base Shelf Prospectus, will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ: VEV) (TSXV: VMC) (FRA: 6LGA) is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company’s strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.
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