GreenPower Closes Fifth Tranche of Term Loan Offering
GreenPower Motor Company (NASDAQ: GP) has closed the fifth tranche of its secured term loan offering, raising US$250,000 from companies controlled by its CEO and a Director. The loans, bearing a 12% annual interest rate with a two-year term, are secured by the company's assets and subordinated to senior debt.
As part of the transaction, the company issued 304,878 share purchase warrants at an exercise price of US$0.41 per share and 60,975 bonus shares to the lenders. Additionally, GreenPower reported selling 216,007 common shares at an average price of US$0.45 through its at-the-market equity offering program, generating net proceeds of US$95,025.
GreenPower Motor Company (NASDAQ: GP) ha concluso la quinta tranche della sua offerta di prestito a termine garantito, raccogliendo 250.000 dollari USA da societ脿 controllate dal suo CEO e da un Direttore. I prestiti, con un tasso di interesse annuo del 12% e durata biennale, sono garantiti dai beni dell'azienda e subordinati al debito senior.
Come parte della transazione, la societ脿 ha emesso 304.878 warrant per l'acquisto di azioni con un prezzo di esercizio di 0,41 dollari USA per azione e 60.975 azioni bonus ai finanziatori. Inoltre, GreenPower ha comunicato la vendita di 216.007 azioni ordinarie a un prezzo medio di 0,45 dollari USA tramite il suo programma di offerta azionaria sul mercato, generando proventi netti per 95.025 dollari USA.
GreenPower Motor Company (NASDAQ: GP) ha cerrado la quinta tranche de su oferta de pr茅stamo a plazo garantizado, recaudando 250.000 d贸lares estadounidenses de empresas controladas por su CEO y un Director. Los pr茅stamos, con una tasa de inter茅s anual del 12% y un plazo de dos a帽os, est谩n garantizados por los activos de la compa帽铆a y subordinados a la deuda senior.
Como parte de la transacci贸n, la compa帽铆a emiti贸 304.878 warrants para compra de acciones a un precio de ejercicio de 0,41 d贸lares por acci贸n y 60.975 acciones de bonificaci贸n a los prestamistas. Adem谩s, GreenPower inform贸 la venta de 216.007 acciones comunes a un precio promedio de 0,45 d贸lares a trav茅s de su programa de oferta de acciones en el mercado, generando ingresos netos de 95.025 d贸lares.
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GreenPower Motor Company (NASDAQ : GP) a cl么tur茅 la cinqui猫me tranche de son offre de pr锚t 脿 terme garanti, levant 250 000 USD aupr猫s d'entreprises contr么l茅es par son PDG et un administrateur. Les pr锚ts, portant un taux d'int茅r锚t annuel de 12% sur une dur茅e de deux ans, sont garantis par les actifs de la soci茅t茅 et subordonn茅s 脿 la dette senior.
Dans le cadre de la transaction, la soci茅t茅 a 茅mis 304 878 bons de souscription d'actions 脿 un prix d'exercice de 0,41 USD par action ainsi que 60 975 actions gratuites aux pr锚teurs. Par ailleurs, GreenPower a d茅clar茅 avoir vendu 216 007 actions ordinaires 脿 un prix moyen de 0,45 USD dans le cadre de son programme d'offre d'actions sur le march茅, g茅n茅rant des produits nets de 95 025 USD.
GreenPower Motor Company (NASDAQ: GP) hat die f眉nfte Tranche seines besicherten Terminkreditangebots abgeschlossen und dabei 250.000 US-Dollar von Unternehmen erhalten, die vom CEO und einem Direktor kontrolliert werden. Die Darlehen tragen einen j盲hrlichen Zinssatz von 12% und haben eine Laufzeit von zwei Jahren. Sie sind durch die Verm枚genswerte des Unternehmens besichert und nachrangig gegen眉ber vorrangigen Schulden.
Im Rahmen der Transaktion gab das Unternehmen 304.878 Aktienkaufoptionen mit einem Aus眉bungspreis von 0,41 US-Dollar pro Aktie sowie 60.975 Bonusaktien an die Kreditgeber aus. Zus盲tzlich meldete GreenPower den Verkauf von 216.007 Stammaktien zu einem durchschnittlichen Preis von 0,45 US-Dollar im Rahmen seines Aktienangebotsprogramms am Markt, wodurch ein Nettoerl枚s von 95.025 US-Dollar erzielt wurde.
- Secured additional working capital through US$250,000 term loan
- Management and directors show confidence by participating in the loan offering
- Successfully raised US$95,025 through ATM program at US$0.45 per share
- High interest rate of 12% on the term loan indicates expensive financing
- Additional share dilution through warrant issuance and bonus shares
- Related party transactions may raise governance concerns
Insights
GreenPower secures insider financing at high interest rates, suggesting cash flow pressure and potential financial distress.
GreenPower's latest
The stated use of proceeds for basic operational needs like supplier payments, production costs, and payroll rather than growth initiatives signals potential cash flow constraints. This financing appears to be addressing immediate liquidity challenges rather than strategic expansion. Additionally, the company had to offer substantial inducements including 304,878 warrants at
Concurrent with this insider financing, GreenPower's at-the-market equity program yielded only
In connection with the Loans, the Company entered into respective loan agreements with companies controlled by the CEO and a Director of the Company (the "Lenders"). Management anticipates that the Company will allocate the net proceeds from the Loans towards production costs, supplier payments, payroll and working capital.
The Loans are secured with a general security agreement on the assets of the Company subordinated to all senior debt with financial and other institutions and will bear interest of
As an inducement for the Loan, the Company issued 304,878 non-transferable share purchase warrants (each, a "Loan Bonus Warrant") to one of the Lenders. Each Loan Bonus Warrant entitles the holder to purchase one common share of the Company (each, a "Share") at an exercise price of
The Lenders are each considered to be a "related party" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and each of the Loans and issuance of Loan Bonus Warrants and Loan Bonus Shares, as applicable, is considered to be a "related party transaction" within the meaning of MI 61-101 but each is exempt from the formal valuation requirement and minority approval requirements of MI 61-101 by virtue of the exemptions contained in section 5.5(a) and 5.7(a) as the fair market value, in each case, of the Loans, the Loan Bonus Warrants, and the Loan Bonus Shares, as applicable, is not more than
All securities issued in connection with the Loans will be subject to a statutory hold period of four months plus a day from the closing of the Closing Date in accordance with applicable securities legislation.
In addition, GreenPower today provided a quarterly update with respect to the Company's at-the-market equity offering program implemented on March 7, 2025 pursuant to a Sales Agreement (the "Sales Agreement") with Roth Capital Partners, LLC (the "Agent").聽For the three months ended June 30, 2025 GreenPower issued a total of 216,007 common shares through the facilities of Nasdaq stock exchange at an average share price of
For further information contact:
Fraser Atkinson, CEO
(604) 220-8048
Brendan Riley, President
(510) 910-3377
Michael Sieffert, CFO
(604) 563-4144
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis.聽 GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. 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. GreenPower was founded in
Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. 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 "upon", "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the use of proceeds of the Loan. Although the Company believes that and the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that the proceeds of the Loan may not be used as stated in this news release, and those additional risks set out in the Company's public documents filed on SEDAR+ at and with the United States Securities and Exchange Commission filed on EDGAR at . Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, 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. 聽漏2025 GreenPower Motor Company Inc. All rights reserved.
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FAQ
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