Vicinity Motor Corp. Applies for Management Cease Trade Order
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a North American supplier of commercial electric vehicles, has requested a temporary Management Cease Trade Order (MCTO) from the British Columbia Securities Commission. This request is due to an anticipated delay in filing its interim financial statements and MD&A for the six months ended June 30, 2024. The delay stems from the company's need to address the August 9, 2024 demand for payment from secured creditors and their notice of intention to enforce security.
Vicinity Motor Corp. expects to finalize the interim filings by September 13, 2024. The company has imposed an insider trading blackout and will comply with alternative information guidelines. Additionally, the company has temporarily laid off 55 employees across Canada and the United States to address immediate liquidity concerns.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), un fornitore nordamericano di veicoli elettrici commerciali, ha richiesto un Management Cease Trade Order (MCTO) temporaneo alla British Columbia Securities Commission. Questa richiesta è dovuta a un ritardo previsto nella presentazione dei suoi bilanci finanziari intermedi e del MD&A per i sei mesi terminati il 30 giugno 2024. Il ritardo è causato dalla necessità dell'azienda di affrontare la richiesta di pagamento del 9 agosto 2024 da parte dei creditori garantiti e il loro avviso di intenzione di far valere la garanzia.
Vicinity Motor Corp. si aspetta di finalizzare le presentazioni interim entro il 13 settembre 2024. L'azienda ha imposto un blocco del commercio con insider e rispetterà le linee guida alternative per l'informazione. Inoltre, l'azienda ha temporaneamente licenziato 55 dipendenti in Canada e negli Stati Uniti per affrontare preoccupazioni immediate di liquidità.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), un proveedor norteamericano de vehículos eléctricos comerciales, ha solicitado una Orden de Cese de Comercio del Management (MCTO) temporal a la Comisión de Valores de Columbia Británica. Esta solicitud se debe a un retraso anticipado en la presentación de sus estados financieros intermedios y del MD&A para los seis meses que terminaron el 30 de junio de 2024. El retraso proviene de la necesidad de la empresa de abordar la demanda de pago del 9 de agosto de 2024 por parte de los acreedores garantizados y su aviso de intención de ejecutar la garantía.
Vicinity Motor Corp. espera finalizar las presentaciones interinas para el 13 de septiembre de 2024. La empresa ha impuesto un bloqueo de operaciones con información privilegiada y cumplirá con las pautas alternativas de información. Además, la empresa ha despedido temporalmente a 55 empleados en Canadá y Estados Unidos para abordar preocupaciones inmediatas de liquidez.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), 북미 상업 전기차 공급업체가 브리티시 컬럼비아 증권위원회에 대해 경영 중단 거래 명령(MCTO)을 임시로 요청했습니다. 이 요청은 2024년 6월 30일까지의 6개월간의 중간 재무제표 및 MD&A 제출이 예상보다 지연되는 것과 관련이 있습니다. 이 지연은 보안 채권자들로부터의 2024년 8월 9일 지급 요청 및 그들의 보안 집행 의도를 해결할 필요성에서 발생합니다.
Vicinity Motor Corp.는 2024년 9월 13일까지 중간 제출을 마무리할 것으로 예상하고 있습니다. 회사는 내부자 거래 차단을 시행했으며, 대체 정보 지침을 준수할 것입니다. 또한, 회사는 즉각적인 유동성 문제를 해결하기 위해 캐나다와 미국 전역에서 55명의 직원을 임시로 해고했습니다.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), un fournisseur nord-américain de véhicules électriques commerciaux, a demandé un Ordre d'Interdiction de Négociation de Gestion (MCTO) temporaire à la Commission des Valeurs Mobilières de la Colombie-Britannique. Cette demande est due à un retard anticipé dans le dépôt de ses états financiers intermédiaires et de son MD&A pour les six mois se terminant le 30 juin 2024. Le retard découle de la nécessité pour l'entreprise de répondre à la demande de paiement du 9 août 2024 de la part des créanciers garantis et à leur avis d'intention d'exécuter la garantie.
Vicinity Motor Corp. s'attend à finaliser les dépôts intermédiaires d'ici le 13 septembre 2024. L'entreprise a imposé un blocus de négociation d'initiés et respectera les lignes directrices alternatives en matière d'information. De plus, l'entreprise a licencié temporairement 55 employés au Canada et aux États-Unis pour faire face à des préoccupations immédiates en matière de liquidité.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), ein nordamerikanischer Anbieter von gewerblichen Elektrofahrzeugen, hat bei der British Columbia Securities Commission eine vorübergehende Management Cease Trade Order (MCTO) beantragt. Dieser Antrag erfolgt aufgrund einer voraussichtlichen Verzögerung bei der Einreichung der Zwischenfinanzberichte und des MD&A für die sechs Monate, die am 30. Juni 2024 endeten. Diese Verzögerung resultiert aus dem Bedarf des Unternehmens, auf die Zahlungsaufforderung vom 9. August 2024 von gesicherten Gläubigern und deren Mitteilung zur Durchsetzung der Sicherheit zu reagieren.
Vicinity Motor Corp. erwartet, die Zwischenberichte bis zum 13. September 2024 abzuschließen. Das Unternehmen hat ein Handelsverbot für Insider verhängt und wird die alternativen Informationsrichtlinien einhalten. Darüber hinaus hat das Unternehmen vorübergehend 55 Mitarbeiter in Kanada und den Vereinigten Staaten entlassen, um sofortige Liquiditätsprobleme anzugehen.
- Company proactively requested MCTO to secure additional time for financial reporting
- Management expects to finalize interim filings by September 13, 2024
- Company committed to bi-weekly status reports during the filing delay period
- Delay in filing interim financial statements and MD&A
- Secured creditors demanded payment of outstanding debt
- Notice of intention to enforce security issued by creditors
- Temporary layoff of 55 employees due to liquidity concerns
- Potential insolvency issues as company evaluates solutions to creditor demands
- Rescheduling of Q2 2024 earnings conference call
Insights
This news is concerning for Vicinity Motor Corp. The company's request for a Management Cease Trade Order (MCTO) signals significant financial distress. The delay in filing financial statements, coupled with creditors demanding payment and enforcing security, suggests severe liquidity issues.
The temporary layoff of
Investors should be wary of potential insolvency risks. While the company states it's not currently in insolvency proceedings, the evaluation of "all potential solutions" suggests this might be on the table. The situation could lead to substantial shareholder dilution or even bankruptcy if not resolved quickly.
The application for an MCTO is a serious legal step that highlights Vicinity's regulatory compliance challenges. This move temporarily prohibits certain insiders from trading but allows public trading to continue, balancing transparency with market stability.
The company's commitment to bi-weekly status reports and adherence to alternative information guidelines demonstrates an attempt to maintain regulatory compliance. However, the creditor enforcement action adds a layer of legal complexity that could potentially lead to more severe consequences, such as receivership or restructuring under creditor protection laws.
Investors should closely monitor the company's ability to meet the new September 13, 2024 deadline for financial filings, as failure to do so could result in more stringent regulatory actions and potential delisting risks.
Vicinity's situation reflects broader challenges in the electric vehicle (EV) sector, particularly for smaller players. The company's financial distress could be indicative of cash burn rates outpacing revenue growth, a common issue in the capital-intensive EV industry.
This news may negatively impact investor sentiment towards smaller EV manufacturers, potentially leading to a sector-wide reassessment of risk. It could also benefit larger, more established EV companies as they may face less competition or even acquisition opportunities.
The temporary layoffs and potential production slowdown could create a market share opportunity for competitors in the commercial EV space. Long-term, this situation may accelerate industry consolidation, favoring companies with stronger balance sheets and established market positions.
VANCOUVER, BC / ACCESSWIRE / August 14, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles today announces that it has requested a temporary Management Cease Trade Order ("MCTO") from the British Columbia Securities Commission ("BCSC") in connection with the Company's filing of its interim financial statements (the "Interim Financial Statements") and MD&A for the six months ended June 30, 2024.
The Company is requesting the MCTO in order to secure additional time to finalize its Interim Financial Statements, the related MD&A and the applicable CEO and CFO certifications (the "Interim Filings"). The anticipated delay in filing the Interim Filings is a result of the news on August 9, 2024 that the Company's secured creditors demanded payment of outstanding debt and issued a notice of intention to enforce security. The Company needs the additional time to appropriately reflect the subsequent events resulting from the current situation with the Company's secured lenders. The Company is assessing options to complete preparation of the Interim Financial Statements and to respond to all queries. It is the Company's reasonable expectation that the Interim Filings will be finalized on or before September 13, 2024.
By way of background and as required by the BCSC, the Company notes the following:
1. The Company is required to file its Interim Filings within 45 days after the end the interim period ended June 30, 2024, such date being August 14, 2024 (the "Interim Filing Deadline") as required by National Instrument 51-102 Continuous Disclosure Obligations ("NI 51-102"). The Company does not anticipate that it will be able to complete the Interim Filings on or before the Interim Filing Deadline.
2. The Company is working diligently to prepare and file the Interim Filings, on or before September 13, 2024.
3. The Company confirms that it intends to issue a status report on a bi-weekly basis, for as long as it remains in default of the Interim Filing Deadline in respect of the Interim Filings.
4. The Company is not subject to any insolvency proceedings as of the date of this news release, though the Company is presently evaluating all potential solutions available to it as a result of the demand from its creditors.
5. There is no other material information concerning the affairs of the Company that has not been generally disclosed.
The Company has imposed an insider trading blackout pending the filing of the Interim Filings and will comply with the alternative information guidelines described in National Policy 12-203 Management Cease Trade Orders during such period. The public will continue to be able to trade in the Company's common shares and the Company's previously scheduled second quarter 2024 earnings conference call will be rescheduled to a future date.
The Company has put an estimated 45 employees located in Canada and 10 employees located in the United States on temporary layoff as a result of the creditor situation to address immediate liquidity concerns and reduction of available cash.
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. In particular, and without limitation, this news release contains forward-looking statements respecting the Company's reasonable expectation that the Interim Filings will be finalized on or before September 13, 2024 and the success of the Company's discussions with its creditors to evaluate potential solutions to enable the Company to carry on. 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, production prospects at Vicinity's assembly facility in the State of Washington, 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 the original press release on accesswire.com
FAQ
Why did Vicinity Motor Corp. (VEV) request a Management Cease Trade Order?
When does Vicinity Motor Corp. (VEV) expect to file its delayed interim financial statements?
How many employees has Vicinity Motor Corp. (VEV) temporarily laid off?
What actions has Vicinity Motor Corp. (VEV) taken regarding insider trading during this period?
