Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $209 MCAD
Stock price at time of publication: $6,79 CAD ( reverse split price 2,26 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 $485 MCAD
Website: https://vicinitymotorcorp.com/
Vicinity Motor Corp today announced that the MBTA has authorized an award on behalf of the California Association for Coordinated Transportation (“CALACT”) consortium members to select Vicinity buses in a statewide purchasing contract that gives State transit agencies authority to purchase “Buy America” compliant buses directly from the Company’s diverse portfolio through its distribution partner ABC Companies.
CALACT is the largest state transit association in the United States, representing California small, rural and specialized transportation providers statewide. CALACT has over 300 members and is dedicated to promoting professional excellence, stimulating ideas and advocating for effective community transportation.
Vehicles authorized for purchase will be produced at Vicinity’s recently announced “Buy America” compliant assembly facility in the State of Washington, which will produce environmentally friendly CNG and clean-diesel vehicles between 28 and 35 feet in length. Once constructed, the Washington State based facility will also produce the upcoming Vicinity Lightning 28’ all electric transit bus.
“The California market represents the largest in the United States, and this contract allows all CALACT members the ability to choose Vicinity as an OEM supplier for their growing fleets,” said William Trainer, Founder and CEO of Vicinity Motor Corp. “CALACT forecasts this contract may include up to 8,000 vehicles over 5 years, representing a major opportunity for Vicinity to expand in California. Leveraging our partnership with ABC Companies, we believe we can offer competitive bids for our innovative line of Vicinity high efficiency buses. We look forward to working with CALACT members to match our unique vehicle offering with their requirements, creating long-term value for both our customers and shareholders,” concluded Trainer.
Roman Cornell, President ABC Companies added, “Our partnership with Vicinity Motor Corp. continues to expand, leveraging Vicinity’s heavy duty mid-size product range which brings exceptional value and flexibility to a changing transit market. The upcoming Vicinity Lightning battery electric bus will further expand our existing electric offering and bring a unique Buy America compliant solution to customers and agencies focused on carbon reduction initiatives.”
ESG Comment:
Today’s news is another HUGE milestone for Vicinity Motor Corp with a contract potential to add sales of up to 8000 vehicles over the next 5 years. This contract could potentially add annual sales figures of 350 MCAD – 560 MCAD for the company. There has lately been news of VMC’s electric vehicle rival Proterra having buses in California catching fire due to extreme heat and also that local officials are considering pulling their buses out of traffic. Therefore this new contract should definately open up for Vicinity Motor corp to take a big piece of the coming growth in the Californian Electric Vehicles market seeing as Proterra’s reputation and stock price is getting beaten down.
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