VANCOUVER, Canada — GreenPower Motor Company Inc. (TSXV: GPV) (OTCQB: GPVRF) (“GreenPower”) a leading designer, manufacturer, and distributor of a diverse line of electric powered buses for the transit, shuttle, tourist and school sectors, has released a letter to its shareholders from its Chairman and CEO Fraser Atkinson.
To my fellow shareholders,
With each day we get greater clarity on the impact of COVID-19 on our operations, at the same time we are seeing the EV transit industry adapting to the “new normal” and moving forward. As an essential business manufacturing on behalf of the transit industry, GreenPower production remains ongoing. While production continues, it does so at a subdued rate to comply with physical distancing recommendations and to protect our family of GreenPower employees. While we have encountered some issues, our supply chain has not been substantially impacted in a negative way. We continue to monitor this situation very closely and are doing everything in our power to have contingency plans in place where feasible should greater disruptions arise. Given the human interaction required to physically deliver a bus, we have experienced some delivery delays relative to our expectations at the start of the year. That being said, in March we were still able to deliver eight EV Stars to customers while carefully adhering to physical distancing recommendations and taking other precautionary measures. In sum, we are part of an industry that is rapidly adapting to overcome the inherent logistical challenges caused by the pandemic, but progress continues for both GreenPower and the EV transit industry as a whole.
As previously disclosed, GreenPower has 100 EV Stars in various stages of production including kits for CKD, cab and chassis and 10 EV Star Plus. In the case of the EV Star Plus, our bodybuilder has temporarily suspended production and will be restarting next week, otherwise production continues on all of our other EV Stars. I think that is somewhat indicative of what we are seeing with the business as a whole, pockets of disruption and some delays, but we are making the necessary adjustments and moving forward.
On the financial front, at the beginning of the year we increased our operating facility with BMO by $3 million. Additionally, we are pursuing funds under the SBA program via the US stimulus package to support operational overhead during this period of disruption. The Directors and Officers who hold the majority of the Company’s outstanding debentures and promissory notes have all agreed to postpone all interest payments. In addition, I have taken a 30% salary reduction and we are making select reductions for some employees working from home. We believe that collectively, these efforts will allow GreenPower to navigate the near term and be well positioned as we emerge from the crisis.
Over the past six months, insiders have purchased over 1.5 million shares of common stock as collectively we are strong believers in the future of GreenPower. Our sales pipeline is strong and we anticipate substantial new orders to be announced in the near future, despite being in the midst of a global pandemic. We are encouraged by the new interest we’ve received during this time. This activity is not by chance, but rather is the result of a focused strategy and effort. We have built a line of superior performing vehicles from the ground up that were designed as all electric from day one and we are seeing great traction with the GreenPower brand as a result. The more vehicles we get on the road, the more our EV bus sells itself. It is one thing to say you have a superior product, now we are proving it and the sales pipeline is a reflection of that.
While uncertainty will remain over the near term, we have great confidence in the years ahead — that GreenPower will strive to further solidify its position as a leading provider of EV transit solutions to this burgeoning industry.
On a personal note, a round of applause to the health care professionals who are the real heroes during this pandemic.
Thank you all for your continued support, and please, stay safe!
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor vehicles, including transit buses, school buses, shuttles, a cargo van and a double decker. GreenPower employs a clean-sheet design to manufacture all-electric buses that are purpose built to be battery powered with zero emissions. GreenPower integrates global suppliers for key components, such as Siemens or TM4 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