GreenPower Announces US$10 Million Financing and US$2.95 Million in Standby Letter of Credit Facilities

Rhea-AI Summary

GreenPower (Nasdaq: GP) announced credit approvals and closed financings totaling US$10.0 million on Jan 8, 2026. The company received CIBC credit approval for US$5.0 million (a US$3.0M revolving line and a US$2.0M three-year term loan) plus a US$450,000 cash‑collateralized letter of credit and a letter of credit facility up to US$2.5M (subject to another lender's approval). GreenPower also closed US$5.0M in term loans from two family offices backed by personal guarantees. The company agreed to issue 3,205,128 warrants at US$0.78 (36 months) and 641,025 shares to one family office. Proceeds will repay an existing operating line and fund general corporate purposes to support production and order fulfillment.

Positive

• Recapitalization with US$10.0M in combined financing
• CIBC credit approval for a US$3.0M revolver and US$2.0M three‑year term loan
• Financing intended to accelerate production to fulfill existing orders
• Letters of credit capacity up to US$2.95M to support operations and contracts

Negative

• Issuance of 3,205,128 warrants at US$0.78 and 641,025 shares creates dilution risk
• One letter of credit facility (US$2.5M) remains subject to approval by another lender
• CIBC transaction requires final documentation and closing conditions to be satisfied

News Market Reaction

+7.96% 2517.0x vol

27 alerts

+7.96% News Effect

+75.0% Peak in 14 hr 5 min

+$349K Valuation Impact

$5M Market Cap

2517.0x Rel. Volume

On the day this news was published, GP gained 7.96%, reflecting a notable positive market reaction. Argus tracked a peak move of +75.0% during that session. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $349K to the company's valuation, bringing the market cap to $5M at that time. Trading volume was exceptionally heavy at 2517.0x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

CIBC facilities total: US$5 million Revolving line of credit: US$3 million CIBC term loan: US$2 million +5 more

8 metrics

CIBC facilities total US$5 million Credit approval from CIBC (revolver plus term loan)

Revolving line of credit US$3 million Part of CIBC financing facilities

CIBC term loan US$2 million Three-year term loan from CIBC

Standby letter of credit US$450,000 Letter of credit secured by cash collateral

LC facility Up to US$2.5 million Additional letter of credit facility subject to approval

Family office term loans US$5 million Closed term loans from two family offices

Loan Bonus Warrants 3,205,128 at US$0.78 Non-transferable warrants, 36‑month term

Loan Bonus Shares 641,025 shares Issued to one family office

Market Reality Check

Price: $0.9880 Vol: Volume 17,159 is below 20...

low vol

$0.9880 Last Close

Volume Volume 17,159 is below 20-day average 30,361 (relative volume 0.57x). low

Technical Price 0.821 trades well below 200-day MA at 3.25 and far under 52-week high of 10.9, despite sitting above the 52-week low of 0.7402.

Peers on Argus

GP gained 7.96% while key peers showed mixed single-digit moves (e.g., XOS at 2....

1 Down

GP gained 7.96% while key peers showed mixed single-digit moves (e.g., XOS at 2.87, HCAI at -1.19). Momentum scanner only flagged one other name (FBGL at -5.40%), supporting a company-specific reaction rather than a broad sector rotation.

Historical Context

5 past events · Latest: Dec 16 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 16	Incentive eligibility	Positive	+2.7%	California HVIP reopening with up to $130,000 per EV Star vehicle in incentives.
Nov 24	Incentive eligibility	Positive	+1.2%	NJ ZIP and ZEV programs offering substantial vouchers and low-interest EV loans.
Nov 20	Balance sheet update	Positive	-13.0%	Recognition of $6.8M deferred revenue, reducing liabilities and boosting equity.
Nov 14	Production & financing	Positive	-7.2%	Up to $18M facility to accelerate all-electric school bus production and backlog conversion.
Nov 14	Preferred share financing	Negative	-7.2%	US$18M Series A convertible preferred share facility with 9% dividend and fees.

Pattern Detected

Stock often sold off on prior balance-sheet and financing updates, even when operational news was positive.

Recent Company History

Over the last few months, GreenPower highlighted multiple funding and demand drivers. On Nov 14, 2025, it secured a financing facility of up to $18 million to convert a school bus backlog above $50 million, plus a preferred share facility up to US$18.0 million, with the stock falling 7.19%. A $6.8 million balance sheet improvement on Nov 20, 2025 also saw a -13.04% move, while incentive-related updates in New Jersey and California produced modest gains. Today’s recapitalization financing continues this balance-sheet focused theme.

Market Pulse Summary

The stock moved +8.0% in the session following this news. A strong positive reaction aligns with inv...

Analysis

The stock moved +8.0% in the session following this news. A strong positive reaction aligns with investors rewarding added liquidity and recapitalization progress. The company secured new credit approvals totaling US$5 million from CIBC plus US$5 million in family office term loans while trading near its 52-week low of 0.7402. However, issuance of 3,205,128 warrants at US$0.78 and 641,025 bonus shares introduced dilution that could cap enthusiasm if financing benefits do not translate into clear operating gains.

Key Terms

revolving line of credit, term loan, letter of credit, letter of credit facility, +4 more

8 terms

revolving line of credit financial

"comprised of a $3 million revolving line of credit and a $2 million"

A revolving line of credit is a flexible borrowing arrangement that allows a person or business to access funds up to a set limit whenever needed, much like a prepaid card. As money is repaid, it becomes available to borrow again, making it a convenient way to manage cash flow or cover ongoing expenses. Investors pay attention to it because it reflects a company’s ability to access quick funds and manage financial flexibility.

term loan financial

"revolving line of credit and a $2 million term loan with a three year term"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

letter of credit financial

"enter into a letter of credit of $450,000, secured by cash collateral"

A letter of credit is a bank’s written promise to pay a seller on behalf of a buyer once specified shipping or delivery documents are presented, acting like a guaranteed cashier’s check that only pays when the agreed conditions are met. Investors care because letters of credit reduce payment and counterparty risk, affect a company’s working capital and credit exposure, and can influence deal certainty in contracts, trade financing, and acquisitions.

letter of credit facility financial

"and a letter of credit facility of up to $2.5 million, which is subject"

A letter of credit facility is a bank-backed line that lets a borrower obtain letters of credit — promises the bank will pay a seller if the borrower cannot. Think of it like a guaranteed store voucher that reassures a counterparty they will be paid even if the buyer’s cash is tight. Investors watch this because it supports sales and supply deals, lowers payment risk, and counts against a company’s borrowing capacity and liquidity profile.

share purchase warrants financial

"issue 3,205,128 non-transferable share purchase warrants (each, a "Loan"

A share purchase warrant is a tradable certificate that gives its holder the right to buy a company's stock at a set price within a specified time window. Think of it like a coupon that lets you purchase shares later at a fixed rate; for investors it offers leveraged upside if the stock rises, but can also dilute existing owners when exercised and affects the company’s future share count and value.

statutory hold period regulatory

"will be subject to a statutory hold period of four months plus a day"

A statutory hold period is a legally required time window during which newly issued securities or shares received by insiders cannot be sold. It matters to investors because it affects when those shares can enter the market, influencing supply, short-term liquidity and potential price pressure—think of it like a temporary “no-sell” tag that prevents an immediate flood of items onto a store shelf after a big restock.

related party regulatory

"The family offices are each considered to be a "related party" within"

A related party is a person or organization with close ties to a company — for example major shareholders, board members, executives, their family, or businesses they control — that can influence decisions or enter into transactions with the company. Investors watch related‑party dealings because they can create conflicts of interest or non‑market terms that affect fairness, the company’s finances and transparency; think of it like buying or selling something to a family member rather than on the open market.

related party transaction regulatory

"each of the loans with the family offices and issuance of Loan Bonus Warrants and Loan Bonus Shares, as applicable, is considered to be a "related party transaction""

A related party transaction is any deal or transfer of value between a company and people or entities with close ties to it — such as executives, major owners, family members, or affiliated businesses. Investors watch these transactions because they can favor insiders over outside shareholders, skirt fair market pricing, or hide risks; like selling your car to a relative at a friendly price, they require clear disclosure and scrutiny to judge impact on value.

AI-generated analysis. Not financial advice.

VANCOUVER, BC, Jan. 8, 2026 /PRNewswire/ -- GreenPower Motor Company Inc. (Nasdaq: GP) ("GreenPower" or the "Company"), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced that it has received credit approval from CIBC for $5 million in financing facilities, comprised of a $3 million revolving line of credit and a $2 million term loan with a three year term. Additionally, the Company has received credit approval from CIBC to enter into a letter of credit of $450,000, secured by cash collateral, and a letter of credit facility of up to $2.5 million, which is subject to approval from another financial institution. GreenPower's transaction with CIBC is subject to finalizing documentation, as well as satisfaction of all closing conditions, and all parties are actively working towards a timely completion. In addition, GreenPower has announced that it has closed $5 million in term loans from two family offices, which have provided personal joint and several guarantees in support of these credit facilities. A portion of the net proceeds from the financings will be used to repay and close the Company's existing operating line of credit, with the remainder used for general corporate purposes. These transactions represent an important step in the recapitalization of the Company and will allow GreenPower to accelerate production of all-electric vehicles to fulfil existing customer orders.

The Company has agreed to issue 3,205,128 non-transferable share purchase warrants (each, a "Loan Bonus Warrant") to one of the family offices. Each Loan Bonus Warrant entitles the holder to purchase one common share of the Company (each, a "Share") at an exercise price of US$0.78 per Share for a period of thirty-six (36) months from the closing date of the Loan. In addition, the Company has agreed to issue to one of the family offices an aggregate of 641,025 Shares (each a "Loan Bonus Share"). The family offices are each 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 each of the loans with the family offices and issuance of Loan Bonus Warrants and Loan Bonus Shares, as applicable, 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 Sections 5.5(g) and 5.7(e) of MI 61-101.

All securities issued in connection with the loans with the family offices 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.

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. 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 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 these forward-looking statements. These statements include statements regarding: that the Company will finalize and execute the documentation for the financing facilities and the standby letter of credit facilities and that GreenPower will accelerate production of all-electric vehicles to fulfil existing customer orders.   You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that market fundamentals will support the viability of zero emission vehicles, the availability of all government awards and incentives, the availability of financing necessary for its continued operations, the availability of expertise required for the Company to carry out its planned future activities and product developments, the availability of and the ability to retain and attract qualified personnel, and the ability to maintain and strengthen its strategic partnerships in the industry. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause the Company's actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: the impact of macroeconomic uncertainties and market volatility; the Company's financial performance, including expectations regarding its results of operations and the assumptions underlying such expectations, and ability to achieve and sustain revenues and achieve profitability; the Company's ability to attract and retain customers; the Company's ability to comply with modified or new industry standards, laws and regulations applying to its business, and increased costs associated with regulatory compliance. Forward-looking statements represent the management's beliefs and assumptions only as of the date such statements are made.  Readers should also refer to the risk disclosures outlined in the Company's disclosure documents filed from time-to-time with the Securities and Exchange Commission at www.sec.gov and SEDAR+ at www.sedarplus.ca. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada.

©2026 GreenPower Motor Company Inc. All amounts are denominated in US dollars. All rights reserved.

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SOURCE GreenPower Motor Company

FAQ

What financing did GreenPower (GP) announce on January 8, 2026?

GreenPower announced US$10.0M total: US$5.0M in CIBC credit approvals and US$5.0M closed term loans from two family offices.

How much revolving and term loan financing did CIBC approve for GP?

CIBC approved a US$3.0M revolving line of credit and a US$2.0M term loan with a three‑year term.

What equity instruments did GreenPower issue related to the loans for GP?

The company agreed to issue 3,205,128 warrants exercisable at US$0.78 for 36 months and 641,025 shares to one family office.

How will GreenPower use the proceeds from the US$10M financing (GP)?

A portion will repay and close the existing operating line of credit and the remainder will be used for general corporate purposes and production support.

Are the CIBC facilities and letters of credit for GP finalized?

The CIBC transaction is subject to final documentation and satisfaction of closing conditions; one letter of credit facility is subject to another lender's approval.

Do the family office loans to GreenPower involve related‑party considerations for GP?

Yes; the family offices are related parties and the loans and security issuances are treated as related‑party transactions but noted as exempt from certain MI 61‑101 requirements.