GreenPower Motor Company Secures Additional Funding in Latest Loan Tranche
GreenPower Motor Company Closes Fifth Tranche of Term Loan Offering
On July 4, 2025, GreenPower Motor Company Inc. (Nasdaq: GP; TSXV: GPV), a frontrunner in the manufacturing and distribution of zero-emission, purpose-built electric vehicles, officially announced the closure of its fifth tranche of a previously arranged secured term loan offering. This round of financing brought in a total of $250,000 USD, a crucial infusion of capital intended to bolster the company's operations across its various segments, including the cargo and delivery, shuttle and transit, as well as the school bus sectors.
GreenPower, which has carved out a niche for its all-electric medium and heavy-duty vehicles, entered into loan agreements associated with the tranche with entities linked to the company’s CEO and a Board Director. This alignment of interests suggests a confident outlook among the company's leadership regarding the future financial health and operational strategies of GreenPower. Management indicates that the net proceeds from this loan will be allocated towards essential areas such as production costs, supplier settlements, payroll, and overall working capital, all of which are pivotal for ongoing and future projects.
The loans are secured against the company's assets through a general security agreement, which positions them subordinate to all senior debts involving financial institutions. They will carry an interest rate of 12% annually commencing from the date of closing, lasting for a term of two years or until full repayment of the debt.
In addition to the loan proceeds, as part of the transaction, GreenPower has issued 304,878 non-transferable share purchase warrants to one of the lenders, offering the right to purchase common shares at an exercise price of $0.41 for a two-year period. Another lender will be receiving an aggregate of 60,975 shares as a part of the incentives linked to these loans.
These transactions also classify under