NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC—(Marketwired – May 31, 2017) – GreenPower Motor Company Inc. (TSX VENTURE: GPV) (OTCQX: GPVRF) (“GreenPower” or the “Company“) announces that it has closed a second tranche of its previously announced non–brokered private placement. GreenPower has raised gross proceeds of $250,000 under the second tranche by the issuance of convertible debentures (the “Debentures“). GreenPower raised gross proceeds of $1,900,000 under the first tranche of the financing by the issuance of convertible debentures, as previously disclosed in GreenPower's news release dated May 19, 2017.
The terms of the Debentures include:
- the Debentures mature four years after issuance (the “Maturity Date“), and the principal amount of the Debentures, together with accrued and any unpaid interest, will be payable on the Maturity Date;
- the Debentures bear interest (“Interest“) at the greater of 8% per annum or BMO bank prime rate of lending plus 2.5% per annum, which Interest will be payable monthly;
- the principal amount of the Debentures is convertible into common shares of the Company (“Shares“) at a price of $0.65 per Share at any time, until the Maturity Date;
- the Company issued 384,500 non–transferrable common share purchase warrants (each, a “Warrant“), with each Warrant exercisable into one Share for a period of three years at an exercise price of $0.75 per Share, subject to adjustment; and
- the Company may, at any time after the second anniversary of the issuance date and prior to the Maturity Date, repay the principal amount and any accrued and unpaid Interest of the Debentures.
The Shares issuable upon conversion of the Debentures or exercise of the Warrants are subject to a statutory hold period expiring on October 1, 2017. Finder's fees of $12,500 were paid to arm's length finders in connection with the private placement. The closing of this private placement has been approved by the TSX Venture Exchange.
After paying the costs of the private placement, the net proceeds will be primarily used for production of electric buses, as well as testing, sales and marketing, and general working capital.
About GreenPower Motor Company Inc.
GreenPower Motor Company Inc. develops electric powered vehicles for commercial markets. GreenPower offers a range of electric powered buses deploying electric drive and battery technologies with a lightweight chassis and low floor or high floor body. GreenPower's bus is based on a flexible clean sheet design and utilizes a custom battery management system and a proprietary Flex Power system for the drive motors. GreenPower integrates global suppliers for key components, such as Siemens for the drive motors, Knorr for the brakes, ZF for the axles and Parker for the dash and control systems. 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.greenpowerbus.com.
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.
Â© 2017 GreenPower Motor Company Inc. All rights reserved.