Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $71 MCAD
Stock price at time of publication: $ 1.79 CAD
Target price: 15-32 CAD by external analysts
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 cap 2 billion USD
ESGFIRE comment: We are pleased to see Vicinity Motor securing more orders in an increasingly thougher investment climate. This order and the notable client shows that the company has top of the line products that can handle even the most pressing conditions! The stock has taken a big beating this year standing at -59 %. The valuation is becoming increasingly more compelling and currently stands at 14 X projected EBITDA for 2022. Full press release available below.
TORONTO, ON & VANCOUVER, BC – June 23, 2022 – 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 received an order from the TOK Group, a transportation solutions provider, for six (6) Vicinity Lightning™ electric buses valued at over CAD$3.0 million. These shuttle buses will be used to support a cleaner, greener, quieter shuttle bus service, provided by Nieuport Aviation between Billy Bishop Toronto City Airport and Union Station in Toronto, Canada.
“Each year, hundreds of thousands of people use the shuttle bus service Nieuport Aviation provides to access the city from the Toronto City Airport. It is a vital connector for travelers and staff alike,” noted Neil Pakey, President and CEO of Nieuport Aviation. “As Nieuport sets out its stall to play a leading role in Canadian aviation achieving net zero carbon emission targets, we are thrilled to bring a cleaner, greener, quieter transportation solution to our city. This is a significant step forward in our goal of delivering a brighter and more sustainable future for our airport terminal and neighboring communities.”
Understanding that electric buses provide a net benefit to airport passengers, the public and the environment in general, Nieuport Aviation and TOK Group explored a number of opportunities to find the right the bus model to replace the existing six diesel shuttle buses. After conducting comprehensive market scans and interviews, the Vicinity Lightning™ Bus was selected. The order of six new electric buses are scheduled for delivery in the first quarter of 2023.
“The downtown Toronto shuttle service is an excellent opportunity for the Vicinity Lightning™ EV buses, due to its right-size, versatility, AODA compliance, accessibility, and comfortable ride – powered by an all-electric propulsion system designed with maximum efficiency in mind,” added William Trainer, Founder and CEO of Vicinity Motor Corp. “We look forward to working with the team at the Nieuport Aviation and TOK Group to put these six buses into service, helping to create a sustainable and environmentally friendly service for Toronto’s downtown and waterfront communities.”
Ajay Mehra, CEO at TOK Group, added: “The environment is a key factor and forefront on our client’s minds. Our public and private fleet clients are rapidly shifting from diesel and natural gas to electric vehicle technology. Electric buses are safe, clean, reliable and less expensive to maintain. They are quiet, smooth riding, and eliminate all engine air pollution. Vicinity’s highly compelling Lightning EV product makes them an ideal partner as we seek to diversify our fleets, do our part in the fight against global warming, and reduce the need and dependency on non-renewable energy while also reducing operating costs.”
“As the owner and operator of Billy Bishop Airport, PortsToronto has focused on making the airport among the cleanest, greenest and quietest in the world,” said Gene Cabral, Executive Vice President, PortsToronto and Billy Bishop Toronto City Airport. “This has included significant investments in infrastructure including Canada’s first all-electric ferry and the Ground Run-up Enclosure to reduce noise. We are also encouraging airport partners to contribute to this effort and applaud Nieuport Aviation for making this significant and meaningful investment in introducing electric buses to reduce air and noise emissions for the benefit of passengers and the surrounding community.”
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