Vicinity Motor Corp. Announces Closing of New US$30 Million Credit Facility with Royal Bank of Canada and Export Development Canada

Rhea-AI Summary

Vicinity Motor Corp. (NASDAQ:VEV) has secured a US$30 million credit facility from Royal Bank of Canada and Export Development Canada aimed at financing the production of the VMC 1200 electric truck in 2023. This facility will cover up to 100% of eligible production costs, excluding labor and overhead. The interest rate is set at prime plus 2%, secured by the company's existing assets. The financing will help address a backlog of 1,100 orders for the VMC 1200 while supporting ongoing bus orders. Additionally, Vicinity reported net proceeds of approximately US$5.27 million from its ATM Offering.

Positive

• Secured a US$30 million credit facility to fund VMC 1200 electric truck production.
• Facility covers up to 100% of eligible production costs, enhancing cash flow.
• Ability to monetize a significant 1,100-unit order backlog for the VMC 1200.

Negative

• Dependence on external financing could pose risks if market conditions change.

Credit Facility to Finance VMC 1200 EV Truck Production in 2023 While Maintaining Funding for Existing Bus Orders

VANCOUVER, BC / ACCESSWIRE / February 21, 2023 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced that it has successfully closed on a previously announced US$30M credit facility 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 facility 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 is prime plus 2% and is secured by the existing assets of the Company. In addition to the US$30 million credit facility for the VMC 1200 trucks, RBC will continue to provide Vicinity with CAD$10 million in an asset-backed facility (ABL) for use with its existing bus orders and a US$3 million letter of credit facility.

"This credit facility expansion enables Vicinity to take advantage of more favorable market conditions and provides us with the working capital necessary to monetize our significant 1,100-unit order backlog for the VMC 1200 electric truck as we ramp production in 2023, while maintaining critical funding for existing bus orders," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "We appreciate the strong support and confidence provided by Royal Bank of Canada and Export Development Canada, helping to enable Canadian companies like Vicinity to be the drivers of a more sustainable future. This financing will help to fuel our growth strategy, with the goal of building long-term value for our shareholders."

As required by TSX-V Regulations and as previously disclosed in the Company's third quarter 2022 MD&A, during the quarter ended December 31, 2022, it distributed 4,815,999 shares under its ATM Offering at an average price of US$0.90 per share, having aggregate gross proceeds of US$5,460,597 and aggregate net proceeds of US$5,269,350. The Company paid commissions totaling US$191,246 in connection with the sale of the shares.

About Vicinity Motor Corp.

Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("VMC") 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, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.

Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com

Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

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.

SOURCE: Vicinity Motor Corp.

View source version on accesswire.com:
https://www.accesswire.com/739922/Vicinity-Motor-Corp-Announces-Closing-of-New-US30-Million-Credit-Facility-with-Royal-Bank-of-Canada-and-Export-Development-Canada

FAQ

What is the purpose of Vicinity Motor Corp.'s US$30 million credit facility?

The credit facility is to fund the production of the VMC 1200 electric truck.

How much did Vicinity Motor Corp. raise from its ATM Offering?

Vicinity reported approximately US$5.27 million in net proceeds from its ATM Offering.

What are the terms of the credit facility secured by Vicinity Motor Corp.?

The facility has an interest rate of prime plus 2% and is secured by the company's existing assets.

How many orders does Vicinity Motor Corp. have for the VMC 1200 electric truck?

Vicinity has a backlog of approximately 1,100 orders for the VMC 1200.

Who provided the credit facility to Vicinity Motor Corp.?

The credit facility was provided by Royal Bank of Canada and Export Development Canada.