Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $192MCAD
Stock price at time of publication: $6.21 CAD ( reverse split price 2,07 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 $414 MCAD
Website: https://vicinitymotorcorp.com/

Vicinity Motor Corp. , a leading supplier of electric, CNG, gas and clean diesel vehicles, announces a non-brokered financing of unsecured convertible debenture units in the principal amount of CAD$10,000,000  The Company will use the proceeds for general working capital and to fund contract requirements for recently received Vicinity bus orders. The Offering of the Units is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (“TSXV”), and the Company expects to complete an initial closing of the Offering shortly.

Each Unit will be sold at an offering price of $985.00 per Unit and will consist of one 8% unsecured convertible debenture of the Company in the principal amount of $1,000 (each, a “Debenture”) with interest payable upon maturity being 12 months from the date the Debentures are issued and 40 common share purchase warrants (each, a “Warrant”) expiring 12 months after the date of issuance of such Warrants. The Debentures will be repaid in cash at maturity. Each Warrant will entitle the holder thereof to purchase one Common Share (each, a “Warrant Share”) at an exercise price of $7.50 per Warrant Share at any time up to 12 months following the closing date of the Offering , subject to adjustment in certain events.

The Debentures, in whole or in part, will be convertible into common shares of the Company at the option of the holder at any time following the occurrence of an event of default (as defined in the Debentures) that is uncured for a period of ten (10) business days, at a conversion price equal to the market price on the date the event of default. Holders converting their Debentures will receive accrued and unpaid interest thereon to the date of actual conversion.

The Company will have the right at any time, on 10 days’ notice, to prepay the Debentures, in whole or in part, pro rata among the holders. The repayment shall be in cash, against the principal amount of the Debenture plus accrued and unpaid interest.

The Company anticipates paying an administrative fee(s) of 0.5% of the funds raised, or a portion thereof, to eligible parties under applicable securities laws.

The Debentures, Warrants and the Common Shares issuable upon the exercise of the Warrants or conversion of the Debentures will be subject to a statutory resale restriction of four months and one day from the date of closing. The Company may pay finders’ fees in accordance with TSXV policies.

“We are pleased to announce this friendly debt financing, made possible by the support from some of our key shareholders,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “Our core business has seen robust growth year-to-date, the construction of our Buy-America compliant facility in Washington State is well underway and we continue to expand into exciting new products lines and geographies. I look forward to continued execution in the months ahead as we strive to create sustainable, long-term value for our shareholders.”

 

ESGFIRE comment:
We are very pleased to see that Vicinity Motors has secured non dilutive financing from existing shareholders. We see this as a sign of strength and also increasing shareholder value by not executing a dilutive financing at current levels which we think are very undervalued compared to other EV peers. This action signals strong confidence from the company and great faith from current top shareholders!

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