VANCOUVER, Canada — GreenPower Motor Company, Inc. (TSXV: GPV) (OTCQB: GPVRF), a leading all-electric vehicle manufacturer, announced on Jan. 17 that BMO Bank of Montreal has increased the credit limit on GreenPower’s operating demand loan by US $3.0 million to a total of US $8.0 million.
The operating demand loan bears interest at BMO Bank of Montreal’s US base rate plus 1.5 percent on the outstanding balance, company officials said. It is secured by the assets of GreenPower and one of its subsidiaries. Two directors of the company previously provided personal guarantees of US $2.5 million, or US $5 million in aggregate, GreenPower announced.
The US $3 million increase to the operating demand loan is subject to monthly margining of GreenPower’s accounts receivable and finished goods inventory. The credit facility will be primarily used to finance production costs for GreenPower’s all-electric buses and fund ongoing working capital requirements.
“We appreciate the support from BMO Bank of Montreal in extending a $3 million increase to our operating demand loan on standard commercial terms, which validates the strength of our business and supports GreenPower’s continued expansion,” said Michael Sieffert, CFO.
“We have utilized this nondilutive source of capital to fund our higher production requirements, as we work to further increase shareholder value,” commented Fraser Atkinson, CEO.
With the increase to its operating demand loan in place, management is now focused on moving forward with several production initiatives. GreenPower has begun production of the next round of 100 EV Stars, which are expected to be completed over the coming months—with the first deliveries slated for spring.
In addition, the production of the previously announced EV Star Transit Plus buses is progressing as planned. GreenPower expects to deliver its first EV Star Transit Plus buses to customers next quarter.
Finally, management continues to move forward with the production of EV 250s for airport shuttle service and the next round of school buses.
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. www.greenpowerbus.com
