Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $52 MCAD
Stock price at time of publication: $1, 16 CAD
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
With the news that our top pick in the electric vehicles sector finally have closed on their US$30M in credit commitments from Royal Bank of Canada and Export Development Canada to fund production of the Company’s VMC 1200 class 3 electric truck we are confident the company now is in an excellent position to deliver on their 1,100-unit order backlog in 2023. This credit facility should remove any remaining worry from the market that Vicinity Motors should have to require additional equity funding / private placements that could sink the stock price and we are very positive on the future prospects of the company.
Full press release below:
Vicinity Motor Corp. Announces Closing of New US$30 Million Credit Facility with Royal Bank of Canada and Export Development Canada
Credit Facility to Finance VMC 1200 EV Truck Production in 2023 While Maintaining Funding for Existing Bus Orders
VANCOUVER, BC – February 21, 2023 – Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced that it has successfully closed on a previously announced US$30M credit facility from Royal Bank of Canada (“RBC”) and Export Development Canada (“EDC”) to fund production of the Company’s VMC 1200 class 3 electric truck.
The US$30 million credit facility is designed for use with Vicinity’s VMC 1200 all-electric class 3 truck and can be used for up to 100% of eligible production costs on the vehicle, excluding labor and overhead from Vicinity’s assembly plants. The interest rate on this new facility is prime plus 2% and is secured by the existing assets of the Company. In addition to the US$30 million credit facility for the VMC 1200 trucks, RBC will continue to provide Vicinity with CAD$10 million in an asset-backed facility (ABL) for use with its existing bus orders and a US$3 million letter of credit facility.
“This credit facility expansion enables Vicinity to take advantage of more favorable market conditions and provides us with the working capital necessary to monetize our significant 1,100-unit order backlog for the VMC 1200 electric truck as we ramp production in 2023, while maintaining critical funding for existing bus orders,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We appreciate the strong support and confidence provided by Royal Bank of Canada and Export Development Canada, helping to enable Canadian companies like Vicinity to be the drivers of a more sustainable future. This financing will help to fuel our growth strategy, with the goal of building long-term value for our shareholders.”
As required by TSX-V Regulations and as previously disclosed in the Company’s third quarter 2022 MD&A, during the quarter ended December 31, 2022, it distributed 4,815,999 shares under its ATM Offering at an average price of US$0.90 per share, having aggregate gross proceeds of US$5,460,597 and aggregate net proceeds of US$5,269,350. The Company paid commissions totaling US$191,246 in connection with the sale of the shares.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) (“VMC”) 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, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
VP Corporate Development
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