VANCOUVER, BC / ACCESSWIRE / January 17, 2020 / GreenPower Motor Company Inc. (TSXV:GPV)(OTCQB:GPVRF) ('GreenPower'), a leading all-electric vehicle manufacturer, today announced that BMO Bank of Montreal has increased the credit limit on GreenPower's operating demand loan by US $3.0 million to a total of US $8.0 million.
The operating demand loan bears interest at BMO Bank of Montreal's US base rate plus 1.5% on the outstanding balance and is secured by the assets of GreenPower and one of its subsidiaries. Two directors of the Company previously provided personal guarantees each in the amount of US $2.5 million, or US $5 million in aggregate. The US $3 million increase to the operating demand loan is subject to monthly margining of GreenPower's accounts receivable and finished goods inventory. The credit facility will be primarily used to finance production costs for GreenPower's all-electric buses and fund ongoing working capital requirements.
'We appreciate the support from BMO Bank of Montreal in extending a $3 million increase to our operating demand loan on standard commercial terms, which validates the strength of our business and supports GreenPower's continued expansion,' said Michael Sieffert, Chief Financial Officer. 'We have utilized this non-dilutive source of capital to fund our higher production requirements, as we work to further increase shareholder value,' commented Fraser Atkinson, Chief Executive Officer.
With the increase to its operating demand loan in place, management is now focused on moving forward with several production initiatives. GreenPower has begun production of the next round of 100 EV Stars, which are expected to be completed over the coming months - with the first deliveries slated for spring. In addition, production of the previously announced EV Star Transit Plus buses is progressing as planned and GreenPower expects to deliver its first EV Star Transit Plus buses to customers next quarter. Finally, management continues to move forward with the production of EV 250s for airport shuttle service and the next round of school buses.
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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
This document contains forward-looking statements relating to, among other things, GreenPower's business and operations and the environment in which it operates, which are based on GreenPower's operations, estimates, forecasts and projections. 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 'may,' 'should,' 'will,' 'could,' 'intend,' 'estimate,' 'plan,' 'anticipate,' 'expect,' 'believe' or 'continue,' or the negative thereof or similar variations. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict such as the manufacturing of product or are beyond GreenPower's control, such as the regulations and requirements in different jurisdictions including final approvals for this purchase of vehicles. A number of important factors including those set forth in other public filings (filed under the Company's profile on www.sedar.com) could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. GreenPower disclaims any intention or obligation to update or revise any forward-looking statements 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. All amounts in U.S. dollars. © 2020 GreenPower Motor Company Inc. All rights reserved.
SOURCE: GreenPower Motor Company Inc.
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