Vicinity Motor Corp. Announces US $ 17 Million Common Share Purchase Offer and Warrants

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It plans to use the net proceeds of the offering for the US $ 12 million portion of the license fee payable to Optimal-EV, with the remainder going for general business purposes, including development and certifications. new products, new product demonstration models, expansion of production capacity and general working capital

() told investors that it expects to raise gross proceeds of approximately US $ 17 million through a subscribed public offering of 3,990,610 units at US $ 4.26 each.

The Vancouver, B.C.-based company said it plans to use the net proceeds of the offering for the US $ 12 million portion of the license fees payable to Optimal-Electric Vehicles, with the remainder being intended for general corporate purposes, including the development of new products and certifications, new product demonstration models, expansion of production capacity and general working capital.

In an Oct. 6 announcement, the company said it has signed a licensing and marketing agreement in partnership with Optimal-EV to serve as the exclusive North American distributor of its all-electric product line through Vicinity’s extensive dealer network.

READ: Vicinity Motor enters electric cutaway market in strategic partnership with Optimal-EV

Each unit included in the public offering consists of one common share and one-half common share purchase warrant. Each warrant will allow its holder to purchase one share at an exercise price of US $ 5.10, subject to adjustment in certain circumstances. The warrants will be exercisable upon issuance and will expire three years from the date of issue, the company said.

Spartan Capital Securities LLC is acting as the sole accounting manager of the offering and Revere Securities LLC is the exclusive member of the sales group.

Spartan Capital will receive a subscription fee equal to 7% of the gross proceeds raised under the offer, which will be equivalent to approximately US $ 1.19 million, he added.

The offer is expected to close on or around October 25, 2021, subject to the satisfaction of customary closing conditions.

Vicinity Motor is one of North America’s leading suppliers of electric vehicles for public and commercial enterprises. It draws on a continent-wide dealer network and close relationships with world-class manufacturing partners to supply its market-leading Vicinity clean electric, CNG and diesel buses, the VMC 1200 electric truck. and a Vicinity Optimal-EV shuttle.

In addition, it sells its exclusive electric chassis to EAVX, a subsidiary of JB Poindexter, the company’s strategic partner, to adapt it to new generation delivery vehicles.

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