GreenPower Announces Term Loan Offering
GreenPower Motor Company (Nasdaq: GP) has announced a term loan offering of up to $2 million to support its operations. The loan will bear a 12% annual interest rate with a two-year term and will be secured by company assets. The first tranche of $500,000 is expected to come from companies associated with the CEO and a Director. The loan proceeds will be used for production costs, supplier payments, payroll, and working capital.
As an incentive, the company will issue non-transferable share purchase warrants to lenders, with the number determined by dividing the loan amount by the market price. Future tranches may include bonus warrants or shares up to 20% of the loan amount. The transaction is subject to regulatory approvals and includes a four-month statutory hold period for issued securities.
GreenPower Motor Company (Nasdaq: GP) ha annunciato un'offerta di prestito a termine fino a 2 milioni di dollari per sostenere le sue operazioni. Il prestito avrà un tasso di interesse annuo del 12%, con una durata di due anni, e sarà garantito dai beni aziendali. La prima tranche di 500.000 dollari dovrebbe provenire da società collegate al CEO e a un Direttore. I proventi del prestito saranno utilizzati per i costi di produzione, i pagamenti ai fornitori, gli stipendi e il capitale circolante.
Come incentivo, l'azienda emetterà warrant non trasferibili per l'acquisto di azioni ai finanziatori, il cui numero sarà calcolato dividendo l'importo del prestito per il prezzo di mercato. Tranche future potrebbero includere warrant bonus o azioni fino al 20% dell'importo del prestito. L'operazione è soggetta ad approvazioni regolamentari e include un periodo di blocco statutario di quattro mesi per i titoli emessi.
GreenPower Motor Company (Nasdaq: GP) ha anunciado una oferta de préstamo a plazo de hasta 2 millones de dólares para apoyar sus operaciones. El préstamo tendrá una tasa de interés anual del 12%, con un plazo de dos años, y estará garantizado por los activos de la empresa. La primera tranche de 500,000 dólares se espera que provenga de compañías vinculadas al CEO y a un Director. Los fondos del préstamo se utilizarán para costos de producción, pagos a proveedores, nómina y capital de trabajo.
Como incentivo, la empresa emitirá warrants de compra de acciones no transferibles a los prestamistas, con la cantidad determinada dividiendo el monto del préstamo por el precio de mercado. Las tranches futuras pueden incluir warrants o acciones adicionales hasta un 20% del monto del préstamo. La transacción está sujeta a aprobaciones regulatorias e incluye un período de retención legal de cuatro meses para los valores emitidos.
GreenPower Motor Company (나스닥: GP)는 운영 지원을 위해 최대 200만 달러의 기간 대출 제공을 발표했습니다. 대출은 연 12% 이자율로 2년 만기이며 회사 자산을 담보로 합니다. 첫 번째 분할금 50만 달러는 CEO와 이사와 관련된 회사에서 나올 예정입니다. 대출 자금은 생산 비용, 공급업체 지불, 급여 및 운전 자본에 사용됩니다.
인센티브로 회사는 대출자에게 양도 불가능한 주식 매수권을 발행하며, 매수권 수는 대출 금액을 시장 가격으로 나누어 결정합니다. 향후 분할금에는 대출 금액의 최대 20%에 해당하는 보너스 매수권 또는 주식이 포함될 수 있습니다. 거래는 규제 승인 대상이며 발행 증권에는 4개월의 법정 보유 기간이 포함됩니다.
GreenPower Motor Company (Nasdaq : GP) a annoncé une offre de prêt à terme allant jusqu'à 2 millions de dollars pour soutenir ses opérations. Le prêt portera un taux d'intérêt annuel de 12% sur une durée de deux ans et sera garanti par les actifs de l'entreprise. La première tranche de 500 000 dollars devrait provenir d'entreprises associées au PDG et à un administrateur. Les fonds du prêt seront utilisés pour les coûts de production, les paiements aux fournisseurs, la masse salariale et le fonds de roulement.
En guise d'incitation, la société émettra des bons de souscription d'actions non transférables aux prêteurs, dont le nombre sera déterminé en divisant le montant du prêt par le prix du marché. Les tranches futures pourront inclure des bons ou des actions bonus représentant jusqu'à 20 % du montant du prêt. La transaction est soumise à des approbations réglementaires et comprend une période de blocage légale de quatre mois pour les titres émis.
GreenPower Motor Company (Nasdaq: GP) hat eine Terminkreditofferte von bis zu 2 Millionen US-Dollar zur Unterstützung seiner Betriebstätigkeiten angekündigt. Der Kredit wird einen jährlichen Zinssatz von 12% haben, eine Laufzeit von zwei Jahren und wird durch Unternehmensvermögen besichert. Die erste Tranche von 500.000 US-Dollar wird voraussichtlich von Unternehmen stammen, die mit dem CEO und einem Direktor verbunden sind. Die Darlehensmittel werden für Produktionskosten, Lieferantenzahlungen, Gehälter und Betriebskapital verwendet.
Als Anreiz wird das Unternehmen nicht übertragbare Aktienkaufoptionen an die Kreditgeber ausgeben, deren Anzahl durch Division des Darlehensbetrags durch den Marktpreis bestimmt wird. Zukünftige Tranchen können Bonusoptionen oder Aktien bis zu 20% des Darlehensbetrags enthalten. Die Transaktion unterliegt behördlichen Genehmigungen und beinhaltet eine viermonatige gesetzliche Haltefrist für ausgegebene Wertpapiere.
- Secured $2 million in potential financing to support operations and working capital
- Management's confidence demonstrated through CEO and Director participation in initial $500,000 tranche
- Two-year term provides extended financial flexibility
- High interest rate of 12% annually indicates expensive financing terms
- Potential dilution through warrant issuance to lenders
- Need for additional financing suggests possible cash flow constraints
Insights
GreenPower's $2M term loan at 12% interest with warrant incentives indicates potential cash flow challenges amid operational funding needs.
GreenPower is pursuing a
The loan structure includes several concerning elements: the
The stated use of proceeds for basic operational needs (production costs, supplier payments, payroll) rather than growth initiatives indicates this is primarily addressing working capital shortfalls rather than strategic expansion. The subordination to senior debt positions these lenders with higher risk, explaining the premium interest rate and warrant sweeteners.
While securing this financing provides a temporary cash infusion, it creates additional financial obligations that could constrain future flexibility. The related-party nature of the initial financing may indicate insiders are stepping in because external market options were unavailable or prohibitively expensive. The high cost of this capital will put additional pressure on GreenPower to improve operational efficiency and generate sufficient cash flow to service this debt obligation.
The Company anticipates closing the first tranche of
As an inducement for the Loan, the Company will issue non-transferable share purchase warrants (each, a "Loan Bonus Warrant") to each Initial Lender with the number of Loan Bonus Warrants to be determined by the amount of the Loan to each Individual Lender divided by the Market Price (as such term is defined in the Policies of the TSX Venture Exchange (the "Exchange")) (the "Market Price"). Each Loan Bonus Warrant will entitle the holder to purchase one common share of the Company (each, a "Share") at an exercise price not less than the Market Price of the Shares on the Closing Date for a period of twenty-four (24) months from the Closing Date. The issuance of the Loan Bonus Warrants remains subject to acceptance by the Exchange.
For future tranches, the Company may issue Loan Bonus Warrants or bonus common shares (each, a "Loan Bonus Share") up to
The Company may pay a finder's fee in connection with the Loan. Closing of the Loan is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including Exchange acceptance. All securities issued in connection with the Loan will be subject to a statutory hold period of four months plus a day from the closing of the Loan in accordance with applicable securities legislation.
Certain insiders, including the Initial Lenders, participating in the Loan are considered to be a "related party" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the Loan and issuance of Loan Bonus Warrants is considered to be a "related party transaction" within the meaning of MI 61-101 but each is exempt from the formal valuation requirement and minority approval requirements of MI 61-101 by virtue of the exemptions contained in section 5.5(a) and 5.7(a) as the fair market value of the Loan and Loan Bonus Warrants is not more than
For further information contact:
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
Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. 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. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the use of proceeds of the Loan, the issuance of the Loan Bonus Warrants, and the closing of the Loan. Although the Company believes that and the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that the proceeds of the Loan may not be used as stated in this news release, and those additional risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca and with the United States Securities and Exchange Commission filed on EDGAR at www.sec.gov. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, 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. ©2025 GreenPower Motor Company Inc. All rights reserved.
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SOURCE GreenPower Motor Company
FAQ
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