GreenPower Closes Fourth Tranche of Term Loan Offering
GreenPower Motor Company (NASDAQ: GP) has closed the fourth tranche of its secured term loan offering for $200,000. The loan agreements were made with companies controlled by the CEO and a Director. The loans will bear 12% annual interest with a two-year term and are secured with a general security agreement on company assets.
As part of the deal, the company issued 263,157 share purchase warrants at an exercise price of $0.38 per share and 52,631 bonus shares to the lenders. The proceeds will be used for production costs, supplier payments, payroll, and working capital.
GreenPower Motor Company (NASDAQ: GP) ha concluso la quarta tranche della sua offerta di prestiti a termine garantiti per un importo di 200.000 dollari. Gli accordi di prestito sono stati stipulati con società controllate dal CEO e da un Direttore. I prestiti prevedono un interesse annuo del 12% con una durata di due anni e sono garantiti da un accordo di garanzia generale sui beni aziendali.
Come parte dell'accordo, la società ha emesso 263.157 warrant per l'acquisto di azioni con un prezzo di esercizio di 0,38 dollari per azione e 52.631 azioni bonus ai finanziatori. I proventi saranno utilizzati per i costi di produzione, pagamenti ai fornitori, salari e capitale circolante.
GreenPower Motor Company (NASDAQ: GP) ha cerrado la cuarta serie de su oferta de préstamo a plazo garantizado por 200,000 dólares. Los acuerdos de préstamo se realizaron con empresas controladas por el CEO y un Director. Los préstamos tendrán un interés anual del 12% con un plazo de dos años y están garantizados mediante un acuerdo de garantía general sobre los activos de la compañía.
Como parte del acuerdo, la compañía emitió 263,157 garantías de compra de acciones con un precio de ejercicio de 0.38 dólares por acción y 52,631 acciones de bonificación para los prestamistas. Los ingresos se utilizarán para costos de producción, pagos a proveedores, nómina y capital de trabajo.
GreenPower Motor Company (NASDAQ: GP)는 담보부 기한부 대출 공모의 네 번째 분할에서 20만 달러를 마감했습니다. 대출 계약은 CEO와 이사가 통제하는 회사들과 체결되었습니다. 대출은 연 12%의 이자를 부과하며 2년 만기이고 회사 자산에 대한 일반 담보 계약으로 담보됩니다.
거래의 일환으로 회사는 대출자에게 263,157주의 주식 매수 워런트를 주당 0.38달러 행사 가격으로, 그리고 52,631주의 보너스 주식을 발행했습니다. 자금은 생산 비용, 공급업체 지불, 급여 및 운전자본에 사용될 예정입니다.
GreenPower Motor Company (NASDAQ: GP) a clôturé la quatrième tranche de son émission d'emprunt à terme garanti pour un montant de 200 000 dollars. Les accords de prêt ont été conclus avec des sociétés contrôlées par le PDG et un administrateur. Les prêts porteront un taux d'intérêt annuel de 12% avec une durée de deux ans et sont garantis par une convention de sûreté générale sur les actifs de la société.
Dans le cadre de l'accord, la société a émis 263 157 bons de souscription d'actions à un prix d'exercice de 0,38 dollar par action ainsi que 52 631 actions bonus aux prêteurs. Les fonds seront utilisés pour les coûts de production, les paiements aux fournisseurs, les salaires et le fonds de roulement.
GreenPower Motor Company (NASDAQ: GP) hat die vierte Tranche ihres gesicherten Terminkreditangebots über 200.000 US-Dollar abgeschlossen. Die Kreditverträge wurden mit Unternehmen abgeschlossen, die vom CEO und einem Direktor kontrolliert werden. Die Darlehen tragen einen jährlichen Zinssatz von 12% mit einer Laufzeit von zwei Jahren und sind durch eine allgemeine Sicherungsvereinbarung auf Unternehmensvermögen abgesichert.
Im Rahmen des Geschäfts hat das Unternehmen 263.157 Aktienkaufwarrants zu einem Ausübungspreis von 0,38 US-Dollar pro Aktie und 52.631 Bonusaktien an die Kreditgeber ausgegeben. Die Erlöse werden für Produktionskosten, Lieferantenzahlungen, Gehälter und Betriebskapital verwendet.
- Secured additional working capital through $200,000 term loan
- Support from company insiders demonstrates management confidence
- High interest rate of 12% indicates expensive financing
- Potential dilution from warrant and share issuance
- Related party transaction suggests possible difficulties securing traditional financing
Insights
GreenPower secures insider funding at 12% interest rate with significant dilution, indicating potential cash flow challenges.
GreenPower has closed a fourth tranche of
The 12% interest rate is substantially above typical corporate borrowing rates, suggesting either limited access to traditional financing or urgent capital needs. The company is also issuing 263,157 warrants at
The loan security structure – a general security agreement on company assets subordinated to senior debt – indicates a layered capital structure with multiple secured creditors. This adds complexity to the company's financial obligations and potentially limits future financing flexibility.
Most notably, the stated use of proceeds for "production costs, supplier payments, payroll and working capital" suggests the company may be experiencing working capital constraints or cash flow challenges. Companies typically secure external financing for growth initiatives rather than day-to-day operational expenses unless facing liquidity pressures.
While this financing provides immediate capital, the terms reflect a relatively expensive source of funding that comes with both interest costs and equity dilution. Investors should monitor the company's cash position and operating cash flow in upcoming financial reports to better understand the sustainability of its current financial strategy.
In connection with the Loans, the Company entered into respective loan agreements with companies controlled by the CEO and a Director of the Company (the "Lenders"). Management anticipates that the Company will allocate the net proceeds from the Loans towards production costs, supplier payments, payroll and working capital.
The Loans are secured with a general security agreement on the assets of the Company subordinated to all senior debt with financial and other institutions and will bear interest of
As an inducement for the Loan, the Company issued 263,157 non-transferable share purchase warrants (each, a "Loan Bonus Warrant") to one of the Lenders. Each Loan Bonus Warrant entitles the holder to purchase one common share of the Company (each, a "Share") at an exercise price of
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
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