Vicinity Motor Corp. Partners with RBC and Export Development Canada to Finance Production of VMC 1200 EV Trucks
Credit Facilities with Royal Bank of Canada and Export Development Canada to Provide US$30 Million to Finance VMC 1200 EV Truck Production in 2023, While Maintaining Funding for Existing Bus Orders
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) (“Vicinity” or the “Company”), a North American supplier of commercial electric vehicles, today announced that it has secured US$30M in credit commitments (“credit commitments”) from Royal Bank of Canada (“RBC”) and Export Development Canada (“EDC”) to fund production of the Company’s VMC 1200 class 3 electric truck.
The US$30 million credit commitment is designed for use with Vicinity’s VMC 1200 all-electric class 3 truck and can be used for up to 100% of eligible production costs on the vehicle, excluding labor and overhead from Vicinity’s assembly plants. The interest rate on this new facility will be prime plus 2% and will be secured by existing assets of the Company. In addition to the US$30 million credit commitment for the VMC 1200 trucks, RBC will continue to provide Vicinity with CAD$10 million in an ABL for use with its existing bus orders and a US$3 million letter of credit facility.
“This new US$30 million credit commitment with our partners at RBC and EDC will prove invaluable as we begin to ramp VMC 1200 production, providing us with the working capital necessary to monetize our significant 1,100-unit order backlog,” said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. “We are confident in our ability to scale production given that the VMC 1200 supply chain is largely unaffected by the global pressures impacting the transit bus business.
“The VMC 1200 is a truly revolutionary vehicle and will prove to be a transformational product for Vicinity – the demand we have seen to-date is incredible. Deliveries and upfitting of the VMC 1200 will be facilitated from our Aldergrove, British Columbia and Ferndale, Washington production facilities. Vicinity is well positioned to capture share in a growing market, following the draft legislation for light-duty vehicles that was proposed in Canada on December 21st, requiring automakers and importers to meet zero-emissions vehicle sales quotas. I would like to personally thank our investors, as well as the Royal Bank of Canada and Export Development Canada, for their continued support as we strive to deliver long-term value for both our shareholders and customers,” concluded Trainer.
The additional facility will be an amendment to the current asset-backed facility (“ABL”) currently in place with RBC. The commitment is in the final stages of documentation and due diligence and expected to be in place by February of 2023.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA) is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. For more information, please visit www.vicinitymotorcorp.com.
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Cautionary Note Regarding Forward-Looking Statements
This press release includes 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 the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity’s operational strategies, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, related government-imposed restrictions on operations, the success of Vicinity’s strategic partnerships; and other risk 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 on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law