VANCOUVER, BC / ACCESSWIRE / October 5, 2021 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) ("Vicinity Motor" or the "Company"), a leading supplier of electric, CNG, and clean diesel vehicles, announces that, further to its news release dated September 27, 2021, it has closed its non-brokered financing of unsecured debenture units (each a "Unit") in the principal amount of CAD$10,300,000 (the "Offering"). The Company will use the proceeds for general working capital and to fund contract requirements for recently received Vicinity bus orders.
Each Unit was sold at an offering price of $985.00 per Unit and consists of one 8% unsecured debenture of the Company in the principal amount of $1,000 (each, a "Debenture") with interest payable upon maturity being 12 months from the date the Debentures are issued and 40 common share purchase warrants (each, a "Warrant") expiring 12 months after the date of issuance of such Warrants. The Debentures will be repaid in cash at maturity. Each Warrant will entitle the holder thereof to purchase one Common Share (each, a "Warrant Share") at an exercise price of $7.50 per Warrant Share at any time up to 12 months following the closing date of the Offering (the "Closing Date"), subject to adjustment in certain events.
The Debentures, in whole or in part, will be convertible into common shares of the Company at the option of the holder at any time following the occurrence of an Event of Default that is uncured for a period of ten (10) business days (the "Conversion Date"), at a conversion price equal to the market price on the date the Event of Default. Holders converting their Debentures will receive accrued and unpaid interest thereon to the date of actual conversion.
The Company will have the right at any time, on 10 days' notice, to prepay the Debentures in whole or in part, pro rata among the holders. The repayment shall be in cash, against the principal amount of the Debenture plus accrued and unpaid interest.
The Company paid an administrative fee of 0.5% of the funds raised to Leede Jones Gable Inc.
The Debentures, Warrants and the Common Shares issuable upon the exercise of the Warrants or conversion of the Debentures will be subject to a statutory resale restriction expiring on February 5, 2022. The Company received TSX Venture Exchange approval to close the Offering and issue the Debentures and Warrants.
https://www.accesswire.com/666736/Vicinity-Motor-Corp-Announces-Closing-of-10M-Financing