Vicinity Motor Corp. Announces One Year Extension of Maturity Date on CAD$10 Million Debenture

Rhea-AI Summary

Vicinity Motor Corp. (NASDAQ:VEV) has announced an extension of the maturity date for its CAD$10.3 million unsecured debenture by one year to October 4, 2023. The company will issue 1 million new warrants to the lender as part of this agreement, with an exercise price of $2.25 per share. CEO William Trainer highlighted that this extension enhances capital structure flexibility, allowing the company to leverage an order backlog exceeding $90 million. The transaction is pending TSX Venture Exchange approval.

Positive

• Extended maturity date for CAD$10.3 million debenture, improving liquidity.
• Order backlog over $90 million indicates strong demand.

Negative

• Issuance of new warrants could dilute existing shareholder value.

Extension Provides Capital Structure Optionality, Supporting Near-Term Liquidity Goals

VANCOUVER, BC / ACCESSWIRE / June 9, 2022 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced it has extended the maturity date of its 8% unsecured debenture in the principal amount of CAD$10,300,000 by one year to a new maturity date of October 4, 2023.

In consideration of extending the Maturity Date under the debentures with all other terms of the debt otherwise remaining the same, Vicinity has agreed, subject to receipt of TSX Venture Exchange approval, to issue to the Lender, an aggregate of 1,000,000 share purchase warrants (the "New Warrants") exercisable until October 4, 2023 at an exercise price of $2.25 per common share. The New Warrants will bear a four month and one day restricted period from the date of issuance. The warrant certificate for 412,000 warrants dated October 4, 2021 will be cancelled upon issuance of the New Warrants.

"We are pleased to have extended the maturity date on our 8% unsecured debentures, providing us with additional capital structure optionality as we execute upon our significant order backlog, which currently stands at over $90 million," said William Trainer, Founder and CEO of Vicinity Motor Corp.

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. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company's strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.

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

U.S. Investor Relations Contact:
Lucas Zimmerman or Mark Schwalenberg, CFA
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us

Canadian Investor Relations Contact:
MarketSmart Communications Inc.
877-261-4466
Info@marketsmart.ca

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/704406/Vicinity-Motor-Corp-Announces-One-Year-Extension-of-Maturity-Date-on-CAD10-Million-Debenture

FAQ

What is the new maturity date for Vicinity Motor Corp.'s debenture?

The maturity date has been extended to October 4, 2023.

How much is the unsecured debenture amount announced by Vicinity Motor Corp.?

The unsecured debenture is for CAD$10.3 million.

What is the exercise price for the new warrants issued by Vicinity Motor Corp.?

The exercise price for the new warrants is $2.25 per common share.

What is Vicinity Motor Corp.'s current order backlog?

Vicinity Motor Corp.'s order backlog currently exceeds $90 million.

How many new share purchase warrants is Vicinity Motor Corp. issuing?

Vicinity Motor Corp. is issuing 1 million new share purchase warrants.