The extension provides a capital structure option, supporting short-term liquidity objectives
VANCOUVER, BC /ACCESSWIRE/June 15, 2022/ Vicinity Motor Corp. (NASDAQ:VEV)(TSX.V:VMC)(FRA:6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, announces that it has completed the extension of the date of maturity of its 8% unsecured debenture in the principal amount of C$10,300,000 within an additional year until October 4, 2023.
In consideration for the extension, the Company issued to the debt holders (on a pro rata basis) 1,000,000 equity warrants (the “New Warrants”) exercisable until October 4, 2023 at an exercise price of $2.25 per common share. The New BSAs will be subject to a restriction period of four months and one day from the date of issue. 412,000 equity warrants dated October 4, 2021 issued under the initial debt issuance were canceled under the debt extension.
“We continue to see strong commercial momentum in our conventional and electric vehicle product lines, and this extension to the maturity date of our 8% unsecured debentures will provide us with the flexibility to meet our backlog,” said William Trainer, Founder and CEO. of Vicinity Motor Corp. “I am extremely excited to continue this strong pace of operational execution in the months ahead as we strive to create long-term sustainable value for our shareholders.”
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSX.V:VMC)(FRA:6LGA) is a North American supplier of electric vehicles to public and commercial enterprises. The Company relies on a dealer network and close relationships with world-class manufacturing partners to supply its flagship Vicinity electric, CNG and clean diesel buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle . In addition, the company sells its proprietary electric chassis alongside the EAVX business unit of JB Poindexter, the company’s strategic partner, for equipping next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.
Vice President of Corporate Development
US Investor Relations Contact:
Lucas Zimmerman or Mark Schwalenberg, CFA
MZ Group – MZ North America
Canadian Investor Relations Contact:
MarketSmart Communications Inc.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This press release contains certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”. and similar expressions or statements that events, conditions or results “will”, “may”, “could” or “should” occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Vicinity’s expectations include uncertainties relating to economic conditions in the markets in which Vicinity operates, vehicle sales volume, expected future sales growth, the success Vicinity’s operating strategies, the timing of the completion of the vehicle assembly plant in Washington State, the effect of the COVID-19 pandemic, government restrictions on operations, the success of Vicinity’s strategic partnerships; and other risks and uncertainties disclosed in Vicinity’s reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity’s forward-looking statements reflect the beliefs, opinions and projections as of the date the statements are made. Vicinity undertakes no obligation to update any forward-looking statements or beliefs, opinions, projections or other factors should they change, except as required by law.
THE SOURCE: Vicinity Motor Corp.
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