#Canada #Vancouver #electric vehicles #Term Loan #GreenPower Motor

GreenPower Motor Company Completes Third Tranche of Term Loan Offering

GreenPower Motor Company Inc. (Nasdaq: GP) (TSXV: GPV) has announced the closure of its third tranche in its term loan offering, successfully raising a total of U.S. $300,000. This loan will significantly support the company's mission to enhance the production of its all-electric medium and heavy-duty vehicles. Known for its innovative solutions in the electric vehicle sector, GreenPower operates within niches such as cargo and delivery, shuttle and transit, as well as school bus markets.

The funds sourced from this recently concluded tranche are strategically aimed at bolstering the company’s operational necessities. GreenPower plans to utilize the net proceeds to cover production costs, make supplier payments, and manage payroll and working capital, ensuring that operations run smoothly while anticipating growth in demand for its zero-emission vehicles.

Details on the Loan Offering

The loans are secured against the company’s assets and are subordinate to all senior debt. This means that while the loans will provide essential capital, GreenPower has also ensured that other financial obligations take precedence in the event of liquidation. With an annual interest rate of 12%, the terms of the loan extend for two years from the closing date, stressing the financial commitment and planning involved in GreenPower's operations.

To incentivize the lenders involved in this deal, GreenPower issued 340,909 non-transferable share purchase warrants. These warrants grant holders the opportunity to purchase shares of the company at an exercise price of U.S. $0.44 for up to 24 months. Additionally, one of the lenders will receive 68,181 shares as part of the transaction, which adds an attractive aspect to their investment in the future success of GreenPower.

In terms of regulatory considerations, the lenders are classified as related parties under Multilateral Instrument 61-101, which outlines the financial obligations and protections for minority shareholders. The approval from minority shareholders is not required in this instance, as the value of the loans does not exceed 25% of the company’s market capitalization.

GreenPower's Electric Vehicle Contribution

GreenPower has established itself as a leader in the field of zero-emission vehicles, designing and manufacturing a range of products including transit buses and cargo vans that are powered entirely by battery technology. The primary operational facilities are based in southern California, though the company originated from Vancouver, Canada. This geographical diversity allows GreenPower to tap into various markets and supply chains effectively.

Their innovative designs aim to meet the diverse specifications needed by different operators while maintaining standard parts for ease of maintenance—an essential consideration for fleet operations. Founded in 2015, the company transitioned to become publicly traded in the U.S. via an IPO in August 2020, marking a significant milestone in its growth trajectory.

Looking Ahead

As GreenPower continues along its growth path, the successful closure of this loan tranche will allow them to stay ahead of production schedules and operational demands. Management expects that the anticipated rise in electric vehicle adoption—both in public transportation and commercial sectors—will play a significant role in their upcoming successes. The challenge now lies in effectively managing the new capital to ensure that production aligns with the growing market expectations for electric vehicles.

In conclusion, the third tranche of GreenPower's term loan not only stabilizes its immediate financial needs, but also sets the stage for long-term growth as the global push for cleaner, more sustainable transportation continues to gain momentum. As the demand for zero-emission vehicles escalates, GreenPower seems poised to capitalize on these trends, further strengthening its position in an increasingly competitive market.