GreenPower Announces Reinstatement of Trading on the TSX Venture Exchange

Rhea-AI Summary

GreenPower Motor Company (NASDAQ: GP) announced the reinstatement of its trading on the TSX Venture Exchange following the revocation of a "failure to file" cease trade order on July 31, 2025. The company had failed to file its annual financial statements by the June 30, 2025 deadline.

The company disclosed significant debt obligations, including a $5 million revolving loan facility with approximately $3.6 million outstanding. Additionally, GreenPower received multiple loans from related parties, including CAD $475,000 from FWP Holdings, USD $250,000 from Koko Financial, and CAD $675,000 from 0851433 BC Ltd, all entities beneficially owned by CEO Fraser Atkinson. Previous loans from FWP Holdings with a principal balance of CAD $3.67 million remain outstanding despite maturing on March 31, 2023.

Positive

• None.

Negative

• Failure to file annual financial statements by deadline led to temporary cease trade order
• Significant related-party debt with high interest rates of 12% per annum
• CAD $3.67M in matured loans remain outstanding since March 2023
• Heavy reliance on CEO-owned entities for financing

Insights

Securities Compliance Expert

GreenPower has resolved its regulatory filing issues, regaining TSX Venture Exchange trading privileges while managing significant related-party debt obligations.

The reinstatement of GreenPower Motor's trading on the TSX Venture Exchange represents a critical resolution of regulatory compliance issues that had previously triggered a "failure to file" cease trade order. This development eliminates a significant operational constraint for the company, although the underlying cause - delayed financial reporting - raises questions about internal controls.

The delayed filing of GreenPower's March 2025 year-end financials was eventually remedied on July 31, 2025, a month after the required deadline. While trading continued uninterrupted on NASDAQ, the inability to trade on the Canadian exchange limited liquidity for Canadian investors and potentially restricted capital access in that market.

Of greater concern is the company's significant reliance on related-party financing. GreenPower has accumulated substantial debt from entities controlled by CEO Fraser Atkinson, including approximately CAD $4.14 million in principal plus CAD $557,500 in accrued interest from his related entities. Some loans carrying 12% interest rates have remained unpaid despite maturing in March 2023.

The company also maintains a $5 million revolving credit facility with $3.6 million currently drawn at US Prime +5%, making its cost of capital extraordinarily high for an established public company. This heavy dependence on insider financing and high-interest debt suggests potential difficulties accessing traditional funding sources, which could constrain future growth initiatives in their electric vehicle manufacturing operations.

VANCOUVER, BC, Sept. 3, 2025 /PRNewswire/ -- GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV) ("GreenPower", or the "Company"), today announced that the TSX Venture Exchange (the "Exchange") has completed its review of GreenPower's annual filings and has notified GreenPower that its shares will be reinstated for trading on the Exchange. The British Columbia Securities Commission and the Ontario Securities Commission revoked a "failure to file" cease trade order in respect of GreenPower's securities under Multilateral Instrument 11-103 Failure-to-File Cease Trade Orders in Multiple Jurisdictions (the "CTO") on July 31, 2025, after which the Exchange started a review of GreenPower's annual filings, which has now concluded. The CTO has not impacted trading of GreenPower's shares on the Nasdaq Stock Exchange. The CTO was issued as a result of GreenPower's failure to file its audited financial statements, management's discussion and analysis and related certifications for the year ended March 31, 2025 before the June 30, 2025 filing deadline. These documents were filed by GreenPower on SEDAR + on July 31, 2025.

GreenPower entered into a revolving loan facility (the "Term Loan"), as previously described in GreenPower's news release dated February 13, 2024. The Loan is a revolving loan facility with a credit limit of up to $5,000,000 and a current outstanding balance of approximately $3.6 million, including principal and accrued interest. The Loan bears interest at a floating rate of US Prime +5% per annum, and has a maturity date of January 26, 2027. Additional disclosure regarding the Loan is included in GreenPower's periodic and annual filings and the loan is under review by the Exchange and is subject to Exchange Acceptance.

The Exchange also requested that GreenPower describe certain loans with Related Parties entered into in 2022, 2024, and 2025, that were subject to Exchange acceptance, which are disclosed in GreenPower's periodic and annual filings. During the year ended March 31, 2025, the Company received loans totaling CAD $475,000 from FWP Holdings LLC ("FWP Holdings"), USD$250,000 from Koko Financial Services Inc. ("Koko"), and CAD$675,000 from 0851433 BC Ltd., which have generated accumulated and unpaid interest of approximately $28,500 and CAD $117,500. FWP Holdings, Koko, and 08551433 BC Ltd. are all beneficially owned by Fraser Atkinson, the CEO and Chairman of the Company. The loans bear interest at 12.0% per annum plus such additional bonus interest, if any, as may be agreed to and approved by GreenPower's Board of Directors at a later date. Loans from FWP Holdings with a principal balance of CAD $3,670,000 matured on March 31, 2023 however the principal balance remains outstanding, and these loans have generated accrued and unpaid interest of approximately CAD $440,000. During the quarter ended March 31, 2025 the Company received advances of $150,000 from Koko and CAD$50,000 from FWP Acquisition Corp. that were unsecured and non-interest bearing and were repaid during the quarter ended June 30, 2025, and a further advance of $100,000 from Brendan Riley, President of the Company, that is unsecured and non-interest bearing. On July 21, 2025 the Company received a short-term loan of $125,000 from Countryman, which is a Company that is beneficially owned by David Richardson, a director of the Company, which the Company subsequently repaid.

Contacts

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. 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 Vancouver, Canada with primary operational facilities in southern California. For further information go to www.greenpowermotor.com. 

Forward-Looking Statements

This news release 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 "upon", "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. The forward-looking statements in this news release include the statement related to the reinstatement of trading on the TSX Venture Exchange. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond GreenPower's control. A number of important factors, including those set forth in other public filings (filed under GreenPower's profile on www.sedarplus.ca or www.sec.gov), 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, except as required by applicable securities laws.

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 US dollars unless otherwise indicated. © 2025 GreenPower Motor Company Inc. All rights reserved.

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SOURCE GreenPower Motor Company

FAQ

Why was GreenPower (GP) suspended from trading on the TSX Venture Exchange?

GreenPower was suspended due to failing to file its annual financial statements, management's discussion and analysis, and related certifications for the year ended March 31, 2025 before the June 30, 2025 deadline.

What is the current debt situation of GreenPower Motor Company (GP)?

GreenPower has a $5M revolving loan facility with $3.6M outstanding, plus significant related-party loans including CAD $3.67M in matured loans from FWP Holdings, CAD $475,000 from FWP Holdings, USD $250,000 from Koko Financial, and CAD $675,000 from 0851433 BC Ltd.

How much interest is GreenPower (GP) paying on its related-party loans?

The related-party loans bear interest at 12.0% per annum, plus potential additional bonus interest subject to Board approval. The revolving loan facility bears interest at US Prime +5% per annum.

Did the trading suspension affect GreenPower's (GP) NASDAQ listing?

No, the cease trade order did not impact trading of GreenPower's shares on the Nasdaq Stock Exchange.

Who are the main lenders to GreenPower Motor Company (GP)?

The main lenders are entities beneficially owned by CEO Fraser Atkinson, including FWP Holdings LLC, Koko Financial Services Inc., and 0851433 BC Ltd.