- Vicinity Motor (TSXV:VMC), a North American EV stock focused on commercial buses and trucks, has signed an agreement with secured creditors Royal Bank of Canada and Export Development Canada regarding their previously reported demands for payment
- The parties have settled on terms to work out a debt restructuring plan over the next 60 days, which will see the EV manufacturer return to limited operations
- Vicinity Motor is a North American supplier of electric vehicles for public and commercial enterprise use
- Vicinity Motor stock is up by 15 per cent on the news, trading at C$0.23 per share as of 10:40 am ET, but remains down by 82.84 per cent year-over-year, primarily driven by negative sentiment after news of the debt mentioned above hit the market on Aug. 9
Vicinity Motor (TSXV:VMC), a North American EV stock focused on commercial buses and trucks, has signed an agreement with secured creditors Royal Bank of Canada and Export Development Canada regarding their recent demands for payment.
As previously reported on Stockhouse, the lenders are seeking approximately US$28 million in funds tied to existing credit facilities Vicinity expected to roll over back on July 16.
The parties have settled on terms to work out a debt restructuring plan over the next 60 days, which will see Vicinity return to limited operations and may include future payments and the assignment of new creditor rights and protections.
Vicinity is confident about reaching a definitive plan, according to Wednesday’s news release, and remains focused on returning to full operations.
Leadership insights
“We are pleased to announce this support from our creditor partners and the opportunity to further the important role Vicinity plays in the passenger transportation industry and as a leader in Class-3 commercial EV truck manufacturing,” Brent Phillips, president of Vicinity Motor, said in a statement. “Our strong backlog of fuel-neutral bus orders, including clean diesel and electric buses, provides a solid foundation for this workout plan. The market opportunity for Vicinity buses and industry metrics support accelerated development of our energy efficient transit bus product line while the Class-3 commercial truck market continues to develop.”
About Vicinity Motor
Vicinity Motor is a North American supplier of electric vehicles for public and commercial enterprise use.
Vicinity Motor stock (TSXV:VMC) is up by 15 per cent on the news, trading at C$0.23 per share as of 10:40 am ET. The stock is down by 82.84 per cent year-over-year, primarily driven by negative sentiment after news of the debts mentioned above hit the market on Aug. 9.
Join the discussion: Learn what other investors are saying about this EV stock’s debt balance on the Vicinity Motor Corp. Bullboard, and check out Stockhouse’s stock forums and message boards.
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(Top photo of a Vicinity Motor-branded EV truck: Vicinity Motor)