Vicinity Motor Corp. Announces US$17 Million Underwritten Public Offering of Common Shares and Warrants

Rhea-AI Summary

Vicinity Motor Corp. (NASDAQ:VEV) has announced an underwritten public offering of 3,990,610 units at US$4.26 per unit, aiming for gross proceeds of approximately US$17 million. Each unit consists of one common share and one-half of a warrant, with warrants exercisable at US$5.10 for three years. The proceeds will primarily fund a US$12 million license fee to Optimal-EV, alongside general corporate purposes including product development and production expansion. The offering is expected to close around October 25, 2021.

Positive

• Gross proceeds of approximately US$17 million will support business growth.
• Funds will be used for a US$12 million license fee and product development.

Negative

• The public offering may lead to shareholder dilution.

VANCOUVER, BC / ACCESSWIRE / October 21, 2021 / Vicinity Motor Corp. (TSXV:VMC) (NASDAQ:VEV) (FRA:6LGA) ("Vicinity Motor" or the "Company"), a leading North American supplier of commercial electric vehicles, today announced an underwritten public offering (the "Offering") of 3,990,610 units of the Company (the "Units") at a price of US$4.26 per Unit for gross proceeds to the Company of approximately US$17 million.

Spartan Capital Securities, LLC ("Spartan Capital") is acting as sole book-running manager for the Offering. Revere Securities LLC is the exclusive selling group member for the Offering.

Each Unit consists of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share (a "Warrant Share") at an exercise price of US$5.10, subject to adjustment in certain circumstances. The Warrants will be exercisable immediately upon issuance (the "Issuance Date") and will expire three years from the Issuance Date.

Vicinity Motor intends to use the net proceeds from the Offering for the US$12 million portion of the license fee payable to Optimal-EV, with the remaining net proceeds to be used for general corporate purposes, including new product development and certifications, new product demonstration models, expansion of production capacity and general working capital.

Spartan Capital will receive underwriting commissions equal to 7% of the gross proceeds raised in the Offering, which will be equal to approximately US$1.19 million.

The Offering is expected to close on or about October 25, 2021, subject to the satisfaction of customary closing conditions.

The Offering is being made by way of a prospectus supplement dated October 21, 2021 (the "Prospectus Supplement"), to the Company's existing U.S. registration statement on Form F-10 dated August 17, 2021 (the "Registration Statement") and Canadian short form base shelf prospectus (the "Base Shelf Prospectus") dated April 19, 2021. Copies of the Prospectus Supplement and accompanying Base Shelf Prospectus may be obtained by contacting Spartan Capital by phone at (212) 293-0123, or by emailing investmentbanking@spartancapital.com. The Prospectus Supplement and the Registration Statement are also available on the SEC's website and the Prospectus Supplement (together with the related Base Shelf Prospectus) is available on the SEDAR website maintained by the Canadian Securities Administrators.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) is a leading North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a continent-wide dealer network and close relationships with world-class manufacturing partners to supply its market-leading 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 subsidiary 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@grandewest.com

Investor Relations Contact:
Lucas Zimmerman or Mark Schwalenberg, CFA
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, including without limitation, statements regarding the closing date of the Offering and the intended use of proceeds of the Offering, 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 economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated sales pipeline, 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.

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FAQ

What is the size of the public offering announced by Vicinity Motor Corp (VEV)?

Vicinity Motor Corp announced a public offering of 3,990,610 units at a price of US$4.26 per unit.

When is the expected closing date for the offering by Vicinity Motor Corp (VEV)?

The offering is expected to close on or about October 25, 2021.

What will the proceeds from the Vicinity Motor Corp (VEV) offering be used for?

The proceeds will be used for a US$12 million license fee to Optimal-EV and for general corporate purposes including new product development.

What are the details of the warrants associated with Vicinity Motor Corp (VEV) public offering?

Each unit includes one-half of a warrant, exercisable at US$5.10 for three years.

Who is managing the public offering for Vicinity Motor Corp (VEV)?

Spartan Capital Securities, LLC is the sole book-running manager for the offering.