GreenPower Regains Compliance with Nasdaq's Equity Requirement

Rhea-AI Summary

GreenPower (Nasdaq: GP) regained compliance with Nasdaq Listing Rule 5550(b)(1) on Feb. 16, 2026 after a series of capital transactions. The company completed an equity offering of Series A convertible preferred shares for up to $18 million, secured $5 million in term loans, and restructured related-party debt.

Nasdaq will monitor the company for one year; the common stock continues to trade under GP.

Positive

• Series A equity offering for up to $18 million
• $5 million in new term loans secured
• Related-party debt exchanged into $7M debentures and $3M Series B preferred

Negative

• One-year Nasdaq monitoring remains in place
• Failure to maintain Equity Rule during monitor could trigger delisting without a compliance plan

Market Context

This announcement confirms that GreenPower regained compliance with Nasdaq’s equity requirement, fol...

Analysis

This announcement confirms that GreenPower regained compliance with Nasdaq’s equity requirement, following capital raises, term loans, and exchanges of related-party debt into preferred shares and convertible debentures. The company remains under a one-year Panel monitor, so any renewed equity shortfall could trigger another delisting process. Recent history shows heavy use of structured financings and government incentives, while prior news produced mixed share-price responses. Investors may watch future equity levels, financing terms, and operational execution as key indicators.}

Key Figures

Series A offering size: $18 million Term loans: $5 million Debt-to-debenture exchange: $7 million +5 more

8 metrics

Series A offering size $18 million Equity offering of Series A Convertible Preferred Shares referenced by CEO

Term loans $5 million New term loans cited among recent transactions

Debt-to-debenture exchange $7 million Related party loans exchanged for convertible debentures

Debt-to-Series B exchange $3 million Related party loans exchanged for Series B Convertible Preferred Shares

Monitoring period 1 year Nasdaq Panel monitor period following compliance determination

Price move 31.61% Pre-news 24h price change for GP

52-week range $0.7402 – $7.699 Pre-news 52-week low and high for GP

Volume spike 9,191,515 shares Pre-news trading volume vs 20-day average 536,197

Historical Context

5 past events · Latest: Feb 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 12	Q3 earnings	Positive	-4.5%	Reported Q3 revenue $8.5M and $4.2M net income with cost reductions.
Jan 14	Debt financing	Positive	-1.7%	Closed $5M CIBC facilities with warrants and share issuance to guarantor.
Jan 09	Incentive award	Positive	+51.0%	Announced $14.6M New Mexico incentives and 340-job EV facility plan.
Jan 08	Financing package	Positive	+8.0%	Announced $10M in financings and new letter of credit facilities.
Jan 08	Facility expansion	Positive	+8.0%	Chose New Mexico for 135,000 sq. ft. EV plant and U.S. HQ.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive developments have produced mixed reactions: three news events aligned with price moves, while two showed negative reactions despite constructive updates.

Recent Company History

Over the past months, GreenPower has focused on strengthening its balance sheet and expanding operations. On Jan 8–9, 2026, it announced a New Mexico EV facility with $14.6 million in incentives and about US$10 million in financings, with shares rising up to 51.04%. Subsequent CIBC facilities and related-party financings on Jan 14 and strong Q3 figures on Feb 12 were met with modest declines. Today’s Nasdaq equity-compliance news builds directly on those capital-raising and restructuring steps.

Key Terms

series a convertible preferred shares, series b convertible preferred shares, convertible debentures, line of credit, +2 more

6 terms

series a convertible preferred shares financial

"raising new capital with an equity offering of Series A Convertible Preferred Shares for up to $18 million"

Series A convertible preferred shares are an early round of investment stock that gives holders special rights, such as being paid before common shareholders if the company is sold or shuts down, and sometimes receiving fixed dividends. They can be exchanged for ordinary (common) shares under agreed conditions, so they act like a tradeable ticket that can become regular ownership later. For investors this matters because these shares reduce downside risk while preserving the upside and affect future ownership and dilution.

series b convertible preferred shares financial

"for Series B Convertible Preferred Shares," said Fraser Atkinson, CEO of GreenPower."

Series B convertible preferred shares are a class of company stock sold in a later private funding round that combines features of ownership and a debt-like safety net: holders get priority on payouts over common shareholders and can convert their shares into common stock, often at a set rate. For investors this matters because these shares reduce downside risk while preserving upside potential if the company grows, similar to a safety-lined ticket that can become a regular seat if the event becomes valuable.

convertible debentures financial

"the Company exchanged $7 million of related party loans for convertible debentures"

Convertible debentures are loans a company issues that pay interest like a bond but can be swapped later for the company’s shares at a set price. For investors they act like a safety-net plus a shortcut: you get regular interest payments while retaining the option to join ownership if the share price rises, which offers upside potential but can dilute existing shareholders if conversion occurs.

line of credit financial

"a new banking relationship with CIBC including a line of credit and term loan."

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

term loan financial

"including a line of credit and term loan."

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.

nasdaq capital market regulatory

"continued listing on The Nasdaq Capital Market."

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

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VANCOUVER, BC, Feb. 16, 2026 /PRNewswire/ -- GreenPower Motor Company Inc. (Nasdaq: GP) ("GreenPower" and 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 the Company has received formal notice from The Nasdaq Stock Market LLC ("Nasdaq") confirming that the Company has regained compliance with Nasdaq Listing Rule 5550(b)(1), the "Equity Rule," and otherwise satisfies all applicable criteria for continued listing on The Nasdaq Capital Market.

"Over the past few months GreenPower has completed a series of transactions including raising new capital with an equity offering of Series A Convertible Preferred Shares for up to $18 million,  term loans of $5 million and a new banking relationship with CIBC including a line of credit and term loan. In addition, the Company exchanged $7 million of related party loans for convertible debentures and $3 million of related party loans for Series B Convertible Preferred Shares," said Fraser Atkinson, CEO of GreenPower.  "These transactions have helped the Company regain full compliance with the Nasdaq listing criteria as well as with the execution of our strategic goals."

Notwithstanding the Nasdaq compliance determination, the Company will remain subject to a Panel monitor for one year. If, within that one-year monitoring period, Staff finds the Company again out of compliance with the Equity Rule that was the subject of the hearing, the Company will be subject to a delisting determination and will not have the opportunity to present a compliance plan for the Staff's consideration. However, the Company will be afforded the opportunity to request a hearing before the Hearings Panel, and the hearing request will automatically stay any suspension or delisting action pending the conclusion of the hearings process and the expiration of any additional extension period granted by the Panel following the hearing.

The Company's common stock will continue to trade on Nasdaq under the ticker symbol "GP."

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 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 "upon", "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. A number of important factors including those set forth in other public filings (filed under the Company's profile on www.sedarplus.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.

©2026 GreenPower Motor Company Inc. All rights reserved.

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SOURCE GreenPower Motor Company

FAQ

How did GreenPower (GP) regain Nasdaq compliance on February 16, 2026?

By completing several capital transactions including a Series A equity offering and new loans. According to the company, these actions—equity for up to $18 million, $5 million in term loans, and related-party debt exchanges—restored compliance with Nasdaq Rule 5550(b)(1).

What capital raises did GreenPower (GP) report to regain compliance?

GreenPower raised equity and debt including a Series A offering for up to $18 million. According to the company, it also secured $5 million in term loans and restructured $10 million of related-party loans into convertible securities.

Will GreenPower (GP) remain listed on Nasdaq after the Feb. 16, 2026 notice?

Yes, GreenPower's common stock will continue trading under the symbol GP. According to the company, Nasdaq confirmed compliance but placed the company under a one-year monitoring period.

What are the risks to shareholders from Nasdaq's one-year monitor for GreenPower (GP)?

Shareholders face potential delisting if compliance lapses again during the one-year period. According to the company, a repeat deficiency could prompt a delisting determination without a chance to submit a new compliance plan.

How did GreenPower restructure related-party debt as part of the compliance actions?

The company converted related-party loans into convertible securities and preferred shares. According to the company, $7 million was exchanged for convertible debentures and $3 million for Series B convertible preferred shares.