Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $176 MCAD
Stock price at time of publication: $5.03 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 cap $2500 MCAD
There has been alot of activity for Vicinity Motors lately with an update revenue forecast that projects $140 million in revenues for 2022 which is an increase of 538 % compared to 2020. The company on October 13th announced an exciting partnership with Electrovaya for Lithimum Battery systems. The most significant partnership however was announced on October 6th which consists of a joint venture with Optimal Electric Vehicles, LLC (“Optimal-EV”), a market leader in the low-floor electric shuttle bus segment, to serve as the exclusive North American distributor of its all-electric product line through Vicinity’s wide dealer network. All in all it has been a constant stream of positive news for Vicinity Motors the past few months. The company apparently saw the need to raise funds to participate in the joint venture with Optimal EV and therefore on 21st of October announced a US$17 Million Underwritten Public Offering which was closed only 4 days later. The company stated ” Vicinity Motors intends to use the net proceeds from the Offering for the US$12 million portion of the license fee payable to Optimal-EV, with the remaining net proceeds to be used for general corporate purposes, including new product development and certifications, new product demonstration models, expansion of production capacity and general working capital.”
Although this capital raise has put a short term pressure on the stock price, which is never fun to see as an investor, the company should benefit from this capital injection and the partnership with Optimal EV on a long term outlook. Vicinity Motors is set for massive growth and they continue to add important long term strategic partnerships. We are confident in the company’s long term growth and it remains our top pick in the electric vehicles sector.
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