US$17 Million Underwritten Public Offering VANCOUVER, BC / ACCESSWIRE / October 21, 2021 / Vicinity Motor Corp. (TSXV:VMC) (NASDAQ:VEV) (FRA:6LGA) ("Vicinity Motor" or the "Company"), a leading North American supplier of commercial electric vehicles, today announced an underwritten public offering (the "Offering") of 3,990,610 units of the Company (the "Units") at a price of US$4.26 per Unit for gross proceeds to the Company of approximately US$17 million.
Spartan Capital Securities, LLC ("Spartan Capital") is acting as sole book-running manager for the Offering. Revere Securities LLC is the exclusive selling group member for the Offering.
Each Unit consists of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share (a "Warrant Share") at an exercise price of US$5.10, subject to adjustment in certain circumstances. The Warrants will be exercisable immediately upon issuance (the "Issuance Date") and will expire three years from the Issuance Date.
Vicinity Motor intends to use the net proceeds from the Offering for the US$12 million portion of the license fee payable to Optimal-EV, with the remaining net proceeds to be used for general corporate purposes, including new product development and certifications, new product demonstration models, expansion of production capacity and general working capital.
Spartan Capital will receive underwriting commissions equal to 7% of the gross proceeds raised in the Offering, which will be equal to approximately US$1.19 million.
The Offering is expected to close on or about October 25, 2021, subject to the satisfaction of customary closing conditions.
The Offering is being made by way of a prospectus supplement dated October 21, 2021 (the "Prospectus Supplement"), to the Company's existing U.S. registration statement on Form F-10 dated August 17, 2021 (the "Registration Statement") and Canadian short form base shelf prospectus (the "Base Shelf Prospectus") dated April 19, 2021. Copies of the Prospectus Supplement and accompanying Base Shelf Prospectus may be obtained by contacting Spartan Capital by phone at (212) 293-0123, or by emailing investmentbanking@spartancapital.com. The Prospectus Supplement and the Registration Statement are also available on the SEC's website and the Prospectus Supplement (together with the related Base Shelf Prospectus) is available on the SEDAR website maintained by the Canadian Securities Administrators.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.