Company: Grande West Transportation (Soon to be Vicinity Motor Corp)
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: BUS , BUSXF Will be changed to VMC effective 29/3 2021
Market cap at time of publication: $214 MCAD
Stock price at time of publication: $2,48 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 : Greenpower Motor , Market cap $510 MCAD
Website: https://www.grandewest.com/
I’m today initiating coverage of Grande West transportation which is currently undergoing a name change to Vicinity Motor Corp.
The company is a leading supplier of electric, CNG, gas and clean-diesel buses for both public and commercial enterprise use in the U.S and Canada. Their market share in Canada is 90 % in core products in Canada and the company is expanding into the United States. Their buses are Buy America Act compliant as they aim to produce these in their assembly facility in Washington state. The company has partnered up with BMW for next generation battery packs and have contracted Lion E-mobility for integrating this into their electric Vicinity Buses for superior performance. The company recently also announced a cooperation with Kontrol Energy group to supply covid detectors as an addon service for their customers which further enhances the performance of their transport vehicles.
I personally estimate the turnover for the company in 2021 could conservatively reach between $55-75 MUSD which equals roughly 100-150 vicinity buses and within 3 years my estimate is they could be looking at sales of 1000 Vicinity buses which totals a turnover of roughly $250-$300 MUSD. For the first quarter of 2021 alone the company is expected to reach at least $25 MUSD in revenues with deliveries of 50 Vicinity buses and they expect to deliver another 50 buses for the second quarter of 2021 which could equal another $25 MUSD in revenues .
The evaluation right now if the turnover for 2021 stays at $50MUSD with no further orders as of today would be 3 X sales for 2021. In comparison their peer Greenpower motor has an evaluation right now of 33 X sales for 2021. Grande West transportation group has also recently announced several impressive contracts and agreements which may increase sales in 2021 and beyond to a higher level than I’ve previously mentioned
The company released two big news today on 25/3 2021, one being an announcement of a new order for 17 Vicinity™ Compressed Natural Gas (CNG) buses totaling more than $5 million. These buses are expected to be delivered in Q4 2021. The other big news is the share consolidation in preparation for the up listing at the main list at Nasdaq. The consolidation of the Company’s common shares and change of its corporate name to Vicinity Motor Corp will be completed effective at market open on March 29, 2021 on the basis of one (1) new post-Consolidation common share for every three (3) pre-Consolidation common shares .
The company is very attractive in terms of evaluation and with the upcoming Nasdaq listing this is an fast growing EV stock to definately keep your eyes on!
I own shares in this company personally and this is not to be considered financial advice, always do your own research!
Don’t forget to subscribe to this blog by pressing “follow” or going to the main page furthest down and sign up to receive news update as soon as they’re published!