NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Oct. 13, 2017 (GLOBE NEWSWIRE) -- GreenPower Motor Company Inc. (TSXV:GPV) (OTCQX:GPVRF) (“ GreenPower ” or the “ Company ”) announces that it has closed the second and final tranche of the non-brokered private placement of convertible debentures (the “ Debentures ”) for gross proceeds of $2,220,000 (the “ Financing ”). GreenPower raised gross proceeds of $1,476,000 under the first tranche of the Private Placement which included three of the directors of the Company for aggregate proceeds of $1,425,000 as previously disclosed in GreenPower’s news release dated September 26, 2017.
The terms of the Debentures include:
- the Debentures mature four years after issuance (the “ Maturity Date ”), and the principal amount of the Debentures, together with accrued and any unpaid interest, will be payable on the Maturity Date;
- the Debentures bear interest (“ Interest ”) at the greater of 8% per annum or BMO bank prime rate of lending plus 2.5% per annum, which Interest will be payable monthly in cash;
- the principal amount of the Debentures is convertible into common shares of the Company (each, a “ Share ”) at a price of $0.40 per Share at any time until the Maturity Date;
- the Company issued 5,550,000 non-transferrable common share purchase warrants (each, a “ Warrant ”), with each Warrant exercisable into one Share for a period of four years at an exercise price of $0.50 per Share, subject to adjustment; and
- the Company may, at any time after the second anniversary of the issuance date and prior to the Maturity Date, repay the principal amount and any accrued and unpaid Interest of the Debentures.
The Shares issuable upon conversion of the Debentures or exercise of the Warrants are subject to a statutory hold period expiring four months after the closing. The closing of this private placement has been approved by the TSX Venture Exchange.
After paying the costs of the Financing, the net proceeds will be primarily used for the production of EV350 all-electric transit buses connected to its previously announced order from the City of Porterville.
The Company also plans to enter into a support agreement with two of its directors, David Richardson and Fraser Atkinson. The agreement is for a standby commitment (the “ Standby Commitment ”) of US $500,000 tied to leasing facilities provided by third-party leasing companies for GreenPower customers. In consideration for providing the funds for the Standby Commitment, GreenPower will issue an aggregate of 1,500,000 non-transferrable common share purchase warrants (the “ SG Warrants ”) to David Richardson and Fraser Atkinson. Each SG Warrant will be exercisable into one common share of the Company (each, a “ Share ”) for a period of four years at an exercise price of CDN $0.50 per Share, subject to adjustment.
About GreenPower Motor Company Inc.
GreenPower Motor Company Inc. develops electric powered vehicles for commercial markets. GreenPower offers a range of electric powered buses deploying electric drive and battery technologies with a lightweight chassis and low floor or high floor body. GreenPower’s bus is based on a flexible clean sheet design and utilizes a custom battery management system and a proprietary Flex Power system for the drive motors. GreenPower integrates global suppliers for key components, such as Siemens 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
For further information contact: Fraser Atkinson, Chairman (604) 220-8048
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.
© 2017 GreenPower Motor Company Inc. All rights reserved.
