GreenPower Secures Funding for Growth with New Loan Offering

GreenPower Motor Company Secures Additional Funding

GreenPower Motor Company Inc. (NASDAQ: GP) is making significant strides in the all-electric vehicle market. The company has successfully completed the closing of the second tranche of its secured term loan offering, raising a principal amount of U.S. $500,000. This funding is part of GreenPower's ongoing initiative to expand its production capabilities and effectively meet the growing demand for zero-emission vehicles.

Utilization of Loan Proceeds

The management of GreenPower is optimistic about allocating these funds efficiently across various operational needs. The proceeds from the loan are earmarked for production costs, payments to suppliers, payroll, and overall working capital. These efforts aim to bolster the company’s position in the competitive medium and heavy-duty electric vehicle sector.

Loan Details and Terms

The term loan is backed by a general security agreement on the assets of the company. Notably, it is subordinate to any existing senior debts with financial institutions. The loan carries an annual interest rate of 12% that will apply from the closing date until the loan is fully repaid. It has a term of two years, providing ample time for GreenPower to leverage this financial support effectively.

Issuance of Share Purchase Warrants

As part of the agreement, GreenPower issued 568,181 non-transferable share purchase warrants to one of the lenders. Each warrant grants the holder the right to purchase common shares at an exercise price of U.S. $0.44. This arrangement is designed to enhance investor confidence while facilitating the financial needs of the company.

Regulatory Compliance and Related Party Transactions

In line with various regulations, the loans and associated securities are considered related party transactions. They fall within the definitions established by relevant guiding principles yet are exempted from formal valuation and minority approval requirements. This is due to the transaction's fair market value not exceeding 25% of the company’s market capitalization, ensuring transparency and regulatory compliance.

Company Profile and Industry Impact

GreenPower Motor Company Inc. focuses on designing, building, and distributing high-floor and low-floor all-electric vehicles. Their product lineup includes transit buses, school buses, shuttles, and cargo vans, all crafted to meet stringent environmental standards. Since its inception in Vancouver, Canada, GreenPower has expanded operations widely, emphasizing clean energy and sustainable transportation solutions.

Future Outlook for GreenPower

The recent loan offering is a strategic move that highlights GreenPower’s commitment to innovation in the electric vehicle space. With a growing number of municipalities and businesses seeking eco-friendly transportation options, the company is well-positioned to capitalize on future opportunities within this evolving market.

Frequently Asked Questions

1. What is the purpose of the loan that GreenPower has secured?

The loan proceeds will be allocated to production costs, supplier payments, payroll, and working capital, supporting the company's growth.

2. What is the interest rate on the loan?

The loan carries an interest rate of 12% per annum from the closing date until fully paid off.

3. How long is the term of the loan?

The loan has a term of two years from the closing date.

4. Who are the lenders involved in this loan?

The lenders for this loan include companies controlled by the CEO and a Director of GreenPower.

5. How does GreenPower’s loan impact its business strategy?

This loan provides GreenPower with essential funding, vital for expanding operations and enhancing its competitive edge in the electric vehicle market.

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