GreenPower Announces Fourth Tranche of Term Loan
GreenPower Motor Company (NASDAQ: GP), a manufacturer of zero-emission electric vehicles, has announced the fourth tranche of its secured term loan offering for US$200,000 from companies associated with the CEO and a Director. The funds will be used for production costs, supplier payments, payroll, and working capital.
As part of the loan agreement, the company will issue non-transferable share purchase warrants and bonus shares to one of the lenders. The warrants will allow the purchase of common shares at market price for a 24-month period, while bonus shares will be calculated at 20% of the principal amount divided by market price.
GreenPower Motor Company (NASDAQ: GP), produttore di veicoli elettrici a emissioni zero, ha annunciato la quarta tranche della sua offerta di prestito a termine garantito per un importo di 200.000 USD proveniente da società legate al CEO e a un Direttore. I fondi saranno destinati a costi di produzione, pagamenti ai fornitori, stipendi e capitale circolante.
Come parte dell'accordo di prestito, la società emetterà warrant di acquisto azioni non trasferibili e azioni bonus a uno dei finanziatori. I warrant consentiranno l'acquisto di azioni ordinarie al prezzo di mercato per un periodo di 24 mesi, mentre le azioni bonus saranno calcolate al 20% dell'importo principale diviso per il prezzo di mercato.
GreenPower Motor Company (NASDAQ: GP), fabricante de vehículos eléctricos de cero emisiones, ha anunciado la cuarta serie de su oferta de préstamo a plazo garantizado por 200,000 USD proveniente de empresas vinculadas al CEO y a un Director. Los fondos se destinarán a costos de producción, pagos a proveedores, nómina y capital de trabajo.
Como parte del acuerdo de préstamo, la compañía emitirá warrants de compra de acciones no transferibles y acciones de bonificación a uno de los prestamistas. Los warrants permitirán la compra de acciones comunes al precio de mercado durante un período de 24 meses, mientras que las acciones de bonificación se calcularán en un 20% del monto principal dividido por el precio de mercado.
GreenPower Motor Company (NASDAQ: GP)는 무공해 전기차 제조업체로, CEO 및 이사와 관련된 회사들로부터 20만 달러 규모의 담보 대출 4차 분할을 발표했습니다. 이 자금은 생산 비용, 공급업체 지급, 급여 및 운전자본에 사용될 예정입니다.
대출 계약의 일환으로, 회사는 대출자 중 한 명에게 양도 불가능한 주식 매수 워런트와 보너스 주식을 발행할 예정입니다. 워런트는 24개월 동안 시장 가격으로 보통주를 매수할 수 있는 권리를 부여하며, 보너스 주식은 원금의 20%를 시장 가격으로 나눈 수량으로 산정됩니다.
GreenPower Motor Company (NASDAQ: GP), fabricant de véhicules électriques zéro émission, a annoncé la quatrième tranche de son offre de prêt à terme garanti pour un montant de 200 000 USD provenant d’entreprises liées au PDG et à un administrateur. Les fonds seront utilisés pour les coûts de production, les paiements aux fournisseurs, la masse salariale et le fonds de roulement.
Dans le cadre de l’accord de prêt, la société émettra des bons de souscription d’actions non transférables et des actions gratuites à l’un des prêteurs. Les bons permettront l’achat d’actions ordinaires au prix du marché pendant une période de 24 mois, tandis que les actions gratuites seront calculées à hauteur de 20 % du montant principal divisé par le prix du marché.
GreenPower Motor Company (NASDAQ: GP), ein Hersteller emissionsfreier Elektrofahrzeuge, hat die vierte Tranche seines besicherten Terminkredits in Höhe von 200.000 USD von Unternehmen im Zusammenhang mit dem CEO und einem Direktor angekündigt. Die Mittel werden für Produktionskosten, Lieferantenzahlungen, Gehälter und Betriebskapital verwendet.
Im Rahmen der Kreditvereinbarung wird das Unternehmen nicht übertragbare Bezugsrechte zum Kauf von Aktien sowie Bonusaktien an einen der Kreditgeber ausgeben. Die Bezugsrechte ermöglichen den Kauf von Stammaktien zum Marktpreis für einen Zeitraum von 24 Monaten, während die Bonusaktien mit 20 % des Kapitalbetrags geteilt durch den Marktpreis berechnet werden.
- None.
- Company seeking additional financing through related-party loans indicates potential cash flow constraints
- Dilutive effect on shareholders through issuance of bonus shares and warrants
- Reliance on insider funding may signal difficulties in securing external financing
Insights
GreenPower secures modest $200K insider loan, suggesting potential cash flow challenges requiring related-party funding for basic operations.
The $200,000 fourth tranche loan from insiders (CEO and Director-related entities) signals potential cash constraints at GreenPower. This follows earlier tranches of an unspecified total secured term loan offering. The need to offer both share purchase warrants and bonus shares as inducements for this relatively small amount raises questions about the company's ability to secure traditional financing.
The stated use of proceeds is particularly telling - these funds are earmarked for basic operational needs including production costs, supplier payments, and payroll. This suggests the company may be experiencing working capital difficulties, as healthy operations would typically fund these fundamental expenses through revenue.
The related-party nature of these transactions further indicates potential financing challenges in the broader market. While the company notes these transactions are exempt from certain regulatory requirements due to their relatively small size (less than 25% of market capitalization), the reliance on insider funding could signal limited external financing options.
The issuance of equity incentives (warrants and shares) as loan inducements effectively increases the cost of capital beyond stated interest rates and creates potential dilution for existing shareholders. Without disclosure of the complete loan terms, the actual financing costs remain unclear, but the structure suggests terms that may be less favorable than conventional financing.
The Company anticipates closing the fourth tranche of
As an inducement for the Loans, the Company will issue non-transferable share purchase warrants (each, a "Loan Bonus Warrant") to one of the Lenders, with the number of Loan Bonus Warrants to be determined by the principal amount of the applicable Loan divided by the Market Price (as such term is defined in the Policies of the TSX Venture Exchange) (the "Market Price"). Each Loan Bonus Warrant will entitle the holder to purchase one common share of the Company (each, a "Share") at an exercise price equal to the Market Price of the Shares on the closing date for a period of twenty-four (24) months. In addition, one of the Lenders will be issued Shares (each a "Loan Bonus Share"), with the number of Loan Bonus Shares to be determined by taking
The Lenders are each considered to be a "related party" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and each of the Loans and issuance of Loan Bonus Warrants and Loan Bonus Shares, as applicable, is considered to be a "related party transaction" within the meaning of MI 61-101 but each is exempt from the formal valuation requirement and minority approval requirements of MI 61-101 by virtue of the exemptions contained in section 5.5(a) and 5.7(a) as the fair market value, in each case, of the Loans, the Loan Bonus Warrants and the Loan Bonus Shares, as applicable, is not more than
All securities issued in connection with the Loans will be subject to a statutory hold period of four months plus a day from the closing of the Initial Loan in accordance with applicable securities legislation.
For further information contact:
Fraser Atkinson, CEO
(604) 220-8048
Brendan Riley, President
(510) 910-3377
Michael Sieffert, CFO
(604) 563-4144
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. GreenPower was founded in
Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "upon", "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the use of proceeds of the Loan. Although the Company believes that and the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that the proceeds of the Loan may not be used as stated in this news release, and those additional risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca and with the United States Securities and Exchange Commission filed on EDGAR at www.sec.gov. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. ©2025 GreenPower Motor Company Inc. All rights reserved.
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SOURCE GreenPower Motor Company
FAQ
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