VANCOUVER, British Columbia, Feb. 01, 2019 (GLOBE NEWSWIRE) -- GreenPower Motor Company Inc. (TSX-V: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company”) announced today that it has commenced production on a total of 30 EV Star all-electric buses to fulfill existing customer orders. The EV Star buses will be produced in two tranches with deliveries expected to occur from the end of April 2019 through to the end of June 2019.
The EV Star is an all–electric, zero emission, 25-foot bus that seats up to 19 passengers, with an operational range of 100 to 150 miles on a single charge. This versatile vehicle can be used for micro-transit services, para-transit, vanpool, shuttle, school, employee transportation, tourist operations or cargo transport. The EV Star is a great choice for cities, transit agencies and local organizations with a mandate to reduce emissions. In the State of California, the EV Star is eligible for a base voucher of US $90,000.
GreenPower has also increased its operating demand loan with BMO Bank of Montreal by US $2 million to a total of US $5 million, which bears interest at the US base rate plus 1.5% on the outstanding balance and is secured by the assets of GreenPower. The credit facility will primarily be used to finance production costs for GreenPower’s all-electric buses including the production of the 30 EV Stars described above as well as ongoing working capital requirements.
“We are excited to be producing 30 EV Star all-electric buses to fulfill existing orders, which will further enhance GreenPower’s position in the marketplace as a leading manufacturer of all-electric vehicles,” said Fraser Atkinson, Chairman of GreenPower. “By securing an increase to our revolving operating demand loan we have expanded GreenPower’s access to low cost financing and improved the Company’s ability to expand production capacity.”
Two directors of the Company, David Richardson and Fraser Atkinson, have provided personal guarantees each in the amount of US $2.5 million in support of the US $5 million revolving operating demand loan. In consideration for providing these guarantees, GreenPower has agreed to issue an aggregate of 4.8 million non-transferable common share purchase warrants (the “Warrants”) split equally between David Richardson and Fraser Atkinson. Each Warrant will be exercisable into one common share of the Company for a period of three years at an exercise price of CDN $0.60 per share. The issuance of Warrants is subject to the approval of the TSX Venture Exchange.
Since each of Fraser Atkinson and David Richardson are directors of the Company, the issuance of the Warrants will constitute a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The issuance of the Warrants will be exempt from the need to obtain minority shareholder and formal valuation as required by MI 61-101 as the Company is listed on the TSX Venture Exchange and the fair market value of the Warrants being issued to insiders or the consideration paid by insiders of the Company did not exceed 25% of the Company’s market capitalization.
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor vehicles, including transit buses, school buses, shuttles, and a double decker. GreenPower employs a clean-sheet design to manufacture all-electric buses that are purpose built to be battery powered with zero emissions. GreenPower integrates global suppliers for key components, such as Siemens or TM4 for the drive motors, Knorr for the brakes, ZF for the axles and Parker for the dash and control systems. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. For further information go to www.greenpowerbus.com
Forward-Looking Statements
This document contains forward-looking statements relating to, among other things, GreenPower’s business and operations and the environment in which it operates, which are based on GreenPower’s operations, estimates, forecasts and projections. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond GreenPower’s control, such as the regulations and requirements in different jurisdictions. A number of important factors including those set forth in other public filings (filed under the Company’s profile on www.sedar.com) could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. GreenPower disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. © 2019 GreenPower Motor Company Inc. All rights reserved.