Vicinity Motor Corp. Receives Notice from RBC of Intent to File Receivership Order on Monday, October 21, 2024
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) has announced that Royal Bank of Canada (RBC) intends to file a receivership order on Monday, October 21, 2024. Simultaneously, PricewaterhouseCoopers LLP has resigned as the Company's auditor. The company anticipates that the BC Securities Commission will cease trading of Vicinity Motor Corp. common stock by the same date. This series of events signals significant financial and operational challenges for the company, potentially impacting its ability to continue normal business operations and maintain its stock market listing.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ha annunciato che Royal Bank of Canada (RBC intende presentare un'istanza di amministrazione controllata lunedì 21 ottobre 2024. Allo stesso tempo, PricewaterhouseCoopers LLP ha rassegnato le dimissioni come revisore contabile della società. La società prevede che la Commissione della Securities della Columbia Britannica sospenderà la negoziazione delle azioni ordinarie di Vicinity Motor Corp. entro la stessa data. Questa serie di eventi segnala sfide finanziarie e operative significative per l'azienda, che potrebbero influenzare la sua capacità di continuare le normali operazioni aziendali e mantenere la propria quotazione di mercato.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ha anunciado que Royal Bank of Canada (RBC) tiene la intención de presentar una orden de recepción el lunes 21 de octubre de 2024. Al mismo tiempo, PricewaterhouseCoopers LLP ha renunciado como auditor de la compañía. La compañía anticipa que la Comisión de Valores de Columbia Británica suspenderá la negociación de las acciones ordinarias de Vicinity Motor Corp. para esa misma fecha. Esta serie de eventos señala desafíos financieros y operativos significativos para la empresa, lo que podría impactar su capacidad para continuar operaciones comerciales normales y mantener su listado en el mercado de valores.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)는 Royal Bank of Canada (RBC)가 2024년 10월 21일 월요일에 법원에 관리명령을 제출할 예정이라고 발표했습니다. 동시에 PricewaterhouseCoopers LLP가 회사의 감사직에서 사임했습니다. 회사는 BC 증권 위원회가 Vicinity Motor Corp. 보통주 거래를 같은 날 중단할 것을 예상하고 있습니다. 이러한 일련의 사건은 회사에 중대한 재무 및 운영상의 도전 과제를 의미하며, 이것이 정상적인 사업 운영을 지속하고 주식 시장 상장을 유지하는 능력에 영향을 미칠 수 있습니다.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) a annoncé que la Banque Royale du Canada (RBC) a l'intention de déposer une demande de mise sous séquestre le lundi 21 octobre 2024. En parallèle, PricewaterhouseCoopers LLP a démissionné de son poste d'auditeur de l'entreprise. La société prévoit que la Commission des valeurs mobilières de la Colombie-Britannique mettra fin à la négociation des actions ordinaires de Vicinity Motor Corp. à la même date. Cette série d'événements indique des défis financiers et opérationnels significatifs pour l'entreprise, pouvant potentiellement affecter sa capacité à maintenir ses opérations commerciales normales et son inscription sur le marché boursier.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) hat angekündigt, dass die Royal Bank of Canada (RBC) am Montag, den 21. Oktober 2024, einen Antrag auf Insolvenz stellen will. Gleichzeitig hat PricewaterhouseCoopers LLP als Wirtschaftsprüfer der Gesellschaft gekündigt. Das Unternehmen erwartet, dass die BC Securities Commission den Handel mit den Stammaktien von Vicinity Motor Corp. an demselben Datum einstellen wird. Diese Reihe von Ereignissen deutet auf erhebliche finanzielle und operationale Herausforderungen für das Unternehmen hin, die potenziell seine Fähigkeit beeinträchtigen könnten, den normalen Geschäftsbetrieb fortzusetzen und die Börsennotierung aufrechtzuerhalten.
- None.
- RBC intends to file a receivership order, indicating severe financial distress
- PricewaterhouseCoopers LLP has resigned as the company's auditor, suggesting potential accounting or financial reporting issues
- Expected cease trading of Vicinity Motor Corp. common stock by BC Securities Commission, limiting shareholder liquidity
- Potential delisting from NASDAQ and TSX-V exchanges due to financial and regulatory issues
Insights
This news is catastrophic for Vicinity Motor Corp. and its shareholders. The impending receivership filing by RBC signals severe financial distress, likely due to the company's inability to meet its debt obligations. The resignation of PwC as auditor further compounds the crisis, suggesting potential accounting irregularities or a lack of financial viability.
The expected cease trading order from the BC Securities Commission will effectively render the stock illiquid, trapping existing shareholders. This combination of events typically leads to a complete loss of equity value for shareholders. The company's future is now in serious jeopardy, with control likely to pass to creditors through the receivership process.
Investors should brace for a potential total loss of their investment. The abrupt nature of these announcements, without prior warnings or attempts at restructuring, indicates a rapid deterioration of the company's financial position. This situation serves as a stark reminder of the risks associated with investing in small-cap companies, especially in capital-intensive industries like electric vehicle manufacturing.
The legal implications of this announcement are severe and multifaceted. The receivership filing by RBC will likely result in the appointment of a receiver to take control of Vicinity's assets, effectively removing management's authority over the company. This process is designed to protect creditors' interests but often leaves shareholders with little to no recourse.
The auditor's resignation raises red flags about potential financial irregularities or material weaknesses in internal controls. This could potentially lead to regulatory investigations and legal actions by shareholders claiming inadequate disclosure or misrepresentation. The cease trading order from the BC Securities Commission is a protective measure to prevent further trading on potentially misleading financial information.
Shareholders may explore class action lawsuits, but recovery prospects are typically in such scenarios. Creditors will have priority claims on any remaining assets. The company and its directors may face scrutiny for their disclosures leading up to this event, potentially resulting in regulatory actions or civil litigation.
PricewaterhouseCoopers LLP Resigns as Auditor; BC Securities Commission Expected to Cease Trading by Monday, October 21, 2024
VANCOUVER, BC / ACCESSWIRE / October 18, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company") today announced that Royal Bank of Canada ("RBC") has notified the company that it intends to file a receivership order on Monday, October 21, 2024. Concurrently, PricewaterhouseCoopers LLP has resigned as the Company's auditor. The Company expects that the BC Securities Commission will cease trading of Vicinity Motor Corp. common stock by Monday, October 21, 2024.
Company Contact:
Vicinity Motor Corp.
(604) 607-4000
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 expectations about the Creditors proceeding toward receivership and the inability of the Company to continue to operate. 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 the ongoing discussions with the Creditors and impact of a receivership order on the Company if obtained; 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
What action is Royal Bank of Canada (RBC) taking against Vicinity Motor Corp. (VEV)?
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