Download by
Scanning QR Code
  • Download app

    Download app

You've successfully got advanced quotes worth 5000 HKD
Download APP >>

Vicinity Motor Secures US$30 Million in Credit Commitments; Gains 8% in US Pre-market Trading

MT Newswires ·  01/04 21:04

08:01 AM EST, 01/04/2023 (MT Newswires) -- Vicinity Motor Corp. (NASDAQ:VEV and TSXV:VMC) on Wednesday said it has secured US$30 million in credit commitments from Royal Bank of Canada (NYSE and TSX: RY) and Export Development Canada, pushing its shares almost 8% higher in U.S. pre-market trading.

The North American supplier of commercial electric vehicles said the credit commitment will fund production of the company's VMC 1200 class 3 electric truck. It can be used for up to 100% of eligible production costs on the vehicle, excluding labor and overhead from Vicinity's assembly plants, the company said.

Vicinity said the interest rate on this new facility will be prime plus 2% and will be secured by existing assets of the company. In addition to this credit commitment, RBC will continue to provide Vicinity with C$10 million in an asset-backed loan for use with its existing bus orders and a US$3 million letter of credit facility.

William Trainer, Founder and CEO of Vicinity, said the credit commitment provides the company with the working capital necessary to monetize its 1,100-unit order backlog. The commitment is in the final stages of documentation and due diligence and expected to be in place by February, the company said.

Risk disclosure: The above content only represents the opinion of the authors or guests, and does not represent any positions of Futu or constitute any investment advice on the part of Futu. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisers where necessary. Futu makes every effort to verify the authenticity, accuracy, and originality of the above content, but does not make any guarantees or promises.