Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $58 MCAD
Stock price at time of publication: $ 1.27 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
Website: https://vicinitymotorcorp.com/
ESGFIRE comment:
With todays news that our top pick in the electric vehicles sector has secured 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:
Credit Facilities with Royal Bank of Canada and Export Development Canada to Provide US$30 Million to Finance VMC 1200 EV Truck Production in 2023, While Maintaining Funding for Existing Bus Orders
VANCOUVER, BC – January 4, 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 secured US$30M in credit commitments (“credit commitments”) 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 commitment 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 will be prime plus 2% and will be secured by existing assets of the Company. In addition to the US$30 million credit commitment for the VMC 1200 trucks, RBC will continue to provide Vicinity with CAD$10 million in an ABL for use with its existing bus orders and a US$3 million letter of credit facility.
“This new US$30 million credit commitment with our partners at RBC and EDC will prove invaluable as we begin to ramp VMC 1200 production, providing us with the working capital necessary to monetize our significant 1,100-unit order backlog,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We are confident in our ability to scale production given that the VMC 1200 supply chain is largely unaffected by the global pressures impacting the transit bus business.
“The VMC 1200 is a truly revolutionary vehicle and will prove to be a transformational product for Vicinity – the demand we have seen to-date is incredible. Deliveries and upfitting of the VMC 1200 will be facilitated from our Aldergrove, British Columbia and Ferndale, Washington production facilities. Vicinity is well positioned to capture share in a growing market, following the draft legislation for light-duty vehicles that was proposed in Canada on December 21st, requiring automakers and importers to meet zero-emissions vehicle sales quotas. I would like to personally thank our investors, as well as the Royal Bank of Canada and Export Development Canada, for their continued support as we strive to deliver long-term value for both our shareholders and customers,” concluded Trainer.
The additional facility will be an amendment to the current asset-backed facility (“ABL”) currently in place with RBC. The commitment is in the final stages of documentation and due diligence and expected to be in place by February of 2023.
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.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com
Legal Disclaimer
We own shares of this company personally.
Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advice or recommendations of any kind to either buy or sell any stocks.
Companies may or may not be paying us for content posted on this website.
