Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $46 MCAD
Stock price at time of publication: $1, 00 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
Vicinity Motors have announced that they have secured a new US$9.0 million credit facility from Export Development Canada (“EDC”) (the “New Credit Facility”) to fund working capital and capital expenditures as the Company begins production of the VMC 1200 at its facility in Ferndale, Washington.
This is extremely good news for shareholders of Vicinity Motors as the company will have to rely less on equity financing which would have caused further dilution. We look forward to following the progress of the company and its production of the new VMC 1200! This financing deal brings the total existing financing to over $40 million CAD.
Full press release below:
New Credit Facility Complements the Previously Announced Facility and Provides Additional Financial Resources for Working Capital and Expenditures Related to the Commencement of Production at the Ferndale, Washington Facility
VANCOUVER, BC / May 3, 2023 / Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced that it has secured a new US$9.0 million credit facility from Export Development Canada (“EDC”) (the “New Credit Facility”) to fund working capital and capital expenditures as the Company begins production of the VMC 1200 at its facility in Ferndale, Washington.
“We are pleased to finalize this highly complementary New Credit Facility, which provides us with greater financial flexibility to invest in Vicinity’s next phase of growth,” commented William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “EDC is a tremendous partner, structuring this New Credit Facility to both complement and supplement our existing US$30 million RBC Facility. With this New Credit Facility, we can fund a greater variety of production-related expenses.
“I would like to thank the team at EDC for their vote of confidence in our ability to execute our plan to ramp the Ferndale facility to profitability. The entire team at Vicinity is looking forward to continuing operational execution in the months ahead with a view to revolutionizing the Class 3 work truck market and creating sustainable, long-term value for all our stakeholders,” concluded Trainer.
The New Credit Facility, which is designed for capital expenditures and working capital needs, bears interest at a rate of prime plus a per annum margin between 375 and 500 basis points depending on the Company’s full year EBITDA, and is secured by the existing assets of the Company. This New Credit Facility complements the previously announced US$30 million credit facility, which is required to be used for VMC 1200 production costs, excluding labor and overhead.
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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