Company: Vicinity Motor Corp
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $52 MCAD
Stock price at time of publication: $1, 17 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 a $3,6 million CAD convertible debenture to accelerate their US$150 million order backlog. This was most likely carried out to accelerate the production of the new VCM 12oo series last mile delivery truck. We have a positive outlook on Vicinity Motors which we remain confident in.
Full press release below:
CAD$3.6 Million Financing Comprised of New Strategic Investors to Support Near-Term Monetization of the Company’s US$150 Million Backlog
Not for distribution to U.S. news wire services or dissemination in the United States
VANCOUVER, BC / March 21, 2023 / Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced the receipt of commitments for a non-brokered private placement of unsecured convertible debentures (“Convertible Debentures”) for gross proceeds of CAD$3,600,000 (the “Private Placement”). The Company anticipates closing the Private Placement (the “Closing”) on or about March 24, 2023.
“This Private Placement – supported by strategic investors with a lead order from Focus Asset Management – will accelerate production and deliveries, allowing us to monetize our US$150 million order backlog sooner,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “This capital injection, paired with our recent credit arrangements with RBC and the near-term start of production at our Ferndale facility, positions us for a breakout year. Our plan is now funded, and I look forward to updating investors with further details on our execution strategy on our fourth quarter 2022 earnings conference call in late March.”
The Convertible Debentures are issued in denominations of CAD$1,000, bear interest at 15% per annum, and mature 18 months from the closing date. Interest payments on the Convertible Debentures have been deferred to the twelve-month anniversary and/or maturity.
Each Convertible Debenture is convertible at the holder’s option into units of the Company (the “Units”) at any time prior to maturity at a conversion price of CAD$1.45. Upon conversion, each Unit will consist of one common share of the Company (“Common Share”) and 0.2 common share purchase warrants (each whole warrant a “Warrant”). Each Warrant is exercisable into one Common Share of the Company at an exercise price of CAD$1.45 for a period of thirty-six months following the closing of the Private Placement. All securities issued under the Private Placement have a hold period of four months and a day from closing. The Private Placement is subject to final TSX Venture Exchange approval. In connection with the Private Placement, Vicinity will pay cash commissions to eligible finders in accordance with TSX Venture Exchange policy.
Certain insiders of the Company are expected to participate in the Private Placement. This participation by insiders in the Private Placement constitutes a related party transaction as defined under Multilateral Instrument 61-101 –Protection of Minority Security Holders in Special Transactions. However, the Company considers such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the Convertible Debentures subscribed for by the insiders and the consideration for the Convertible Debentures paid by such insiders, would not exceed 25 percent of the Company’s market capitalization.
The Convertible Debentures issued pursuant to the Private Placement have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Convertible Debentures in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
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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