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GreenPower Motor Company Expands with New Financing Deals

GreenPower Motor Company Inc., listed on Nasdaq under the symbol GP, has recently announced significant financial advancements amounting to US$10 million. This inclusive funding package, which entails various credit facilities, aims to accelerate the production of their all-electric vehicles designed for a range of applications including cargo delivery, public transit, and school services.

Credit Approval Highlights

On January 8, 2026, GreenPower declared it garnered credit approval from CIBC for a total of $5 million in financing facilities. This consists of a revolving line of credit in the amount of $3 million and a term loan totaling $2 million which spans a three-year period. As part of the financing deal, GreenPower has also secured a letter of credit worth $450,000 backed by cash collateral and a further facility cap of up to $2.5 million that awaits approval from another financial institution.

Moreover, the green-tech company has successfully secured an additional $5 million in term loans from two family offices, which have expressed their commitment through personal joint and several guarantees supporting these credit facilities. A portion of the proceeds from both financing avenues will be allocated to settling the firm's existing operating line of credit, while the remainder is earmarked for general corporate purposes.

Driving Electric Vehicle Production

This latest funding round is framed as a crucial step in GreenPower’s recapitalization strategy, empowering the company to ramp up the production of its all-electric zero-emission vehicles. These vehicles are tailored to meet growing demand in the cargo and delivery sectors, alongside the public transportation sphere.

In further developments, GreenPower agreed to the issuance of 3,205,128 non-transferable share purchase warrants to one of the family offices, allowing the holder to acquire a common share at an exercise price of US$0.78 for a period of thirty-six months.

As part of the deal, 641,025 shares will also be released to the same family office, highlighting the close-knit connections between GreenPower and its financial backers. These family offices are considered 'related parties' under the Multilateral Instrument 61-101, which governs minority security holders in special transactions, thereby making this transaction a 'related party transaction'. Nevertheless, it enjoys exemptions from formal valuation and minority approval requirements as established in specific sections of MI 61-101.

Forward-Looking Company Vision

GreenPower Motor Company embraces a 'clean-sheet' design philosophy in building its suite of electric vehicles, which includes high-floor and low-floor transit buses, school buses, shuttles, and cargo vans. This approach not only prioritizes environmental sustainability through zero emissions but also streamlines maintenance and warranty accessibility for customers by integrating standardized parts.

Fraser Atkinson, the company’s CEO, expressed optimism about the financial backing, stating that it will facilitate meeting production quotas to fulfill existing customer orders and further expand their footprint in the eco-friendly vehicle market.

The financing arrangements are also seen as pivotal in ensuring the company's operational viability and further enabling GreenPower to keep pace with market demand spurred by the global shift toward sustainable transportation solutions. Nonetheless, they navigate through certain external factors that could potentially impact market fundamentals, regulatory costs, and overall economic performance in the coming years.

GreenPower continues to demonstrate resilience in an ever-evolving industry landscape, pushing the frontier of electric mobility forward and remaining dedicated to its vision of a sustainable transportation future.