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VANCOUVER, British Columbia, May 03, 2019 (GLOBE NEWSWIRE) -- GreenPower Motor Company Inc. (TSXV: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company”) announces that it has received subscriptions for a brokered private placement for approximately US $4 million (the “Offering”), and is increasing quarterly production to 100 all-electric EV Stars.
The Company has been working with its suppliers and on improvements to its manufacturing processes, and intends to use the majority of the proceeds from the Offering to increase its production to 100 EV Stars per quarter.
“With the market opportunities for GreenPower’s EV Stars we are excited to be increasing production to a level that will deliver sustained profitability,” stated Fraser Atkinson, Chairman of GreenPower. “This Offering is a significant step for the Company in moving forward with its plans to list on NASDAQ which will support the Company’s aggressive growth plans, extend our sales channels for our products, expand the Company’s access to capital, provide liquidity to shareholders and broaden the exposure of the Company to the investment community.”
The all-electric EV Star Min-eBus seats up to 19 passengers, has a range of up to 150 miles on a single charge and can be configured with either a Level 2 or a CCS DC Fast combo charge system. The EV Star is eligible for a base voucher of US $90,000 from the California HVIP program and an additional voucher of US $10,000 where the vehicle is operated in a disadvantaged community.
The Offering consists of units (each, a “Unit”) at a price of CDN $0.408 per Unit for gross proceeds of approximately US $4 Million with each Unit consisting of one common share (each, a “Share”) and one-half share purchase warrant (each, a “Warrant”). Each full Warrant will be exercisable into one Share for a period of four years at an exercise price of CDN $0.51 per Share. Closing of the Offering remains subject to final acceptance of the TSX Venture Exchange. The Company engaged ThinkEquity, a division of Fordham Financial Management, Inc. as placement agent for the Offering and has agreed to pay placement agent’s fees in connection with the issuance of the Units under the Offering. The Company intends to use the proceeds from the Offering to fund the production of all-electric buses, demonstration buses, equipment, general corporate purposes and working capital.
All of the Shares and Warrants issued in the Offering, and any Shares issued upon exercise of the Warrants, are subject to resale restrictions imposed by applicable laws or regulation, including a statutory hold period expiring four months and one day from the date of closing of the Offering.
None of the securities issued in connection with the Offering will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
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, a cargo van 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.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements.” Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the following: that the Company will be able to increase its production to 100 EV Stars per quarter; that the increase in production will lead to profitability and profitability for a sustained period; that the Company will complete a listing on NASDAQ; that the listing on NASDAQ will support the Company’s aggressive growth plans, extend its sales channels for its products, expand the Company’s access to capital, provide liquidity to shareholders and broaden the exposure of the Company to the investment community.
The material assumptions supporting these forward-looking statements include, among others, that the demand for the Company’s products will continue to significantly grow; that the production capacity of the Company can be increased as planned; that the suppliers of materials will be able to satisfy the increased demand; that there will not be interruptions on production of the Company’s products; that there will not be a significant increase in the direct production costs for the Company’s products; that the Company will not be faced with significant increases in its overhead, general and administrative costs; that there will not be a recall of products due to adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the financial requirements needed to list on NASDAQ. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: the risk that government policies or laws may change and that additional governmental regulations may be implemented regarding the production and sale of electric vehicles; the risk that purchasers may not embrace and purchase any of the Company’s EV products; the risk that there may be additional competitors selling EV buses; the risk that the Company will not be able to deliver completed buses on time; the risk that the Company’s clients will not default on their purchase terms; the risk that governmental regulations and taxation will change to adversely affect the Company’s business and financial results; the risk that the Company has a limited number of suppliers; the potential for supply-chain interruption due to factors beyond the Company’s control; the risk that there may be a recall of products; the inherent uncertainties associated with operating as an early-stage company; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; general economic conditions in Canada, the United States, China and globally; transportation industry conditions; potential delays or changes in plans with respect to deployment of services or capital expenditures; availability of sufficient financial resources to pay for the development and costs of the Company’s products; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on green energy initiatives; competition in our target markets; management of future growth and expansion; the development, implementation and execution of the Company’s strategic vision; risk of third-party claims of infringement; legal and/or regulatory risks relating to the Company’s business and strategic acquisitions; protection of proprietary information; the success of the Company’s brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; the Company’s ability to hire and retain qualified employees and key management personnel.
These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with on the SEDAR, available at www.sedar.com.
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.
For further information contact: Fraser Atkinson Chairman (604) 220-8048 Brendan Riley President (510) 910-3377 Michael Sieffert CFO (604) 563-4144