Vicinity Motor Corp. (TSX-V:VMC) has secured US$30 mln from the Royal Bank of Canada (TSX:RY) and the Export Development Canada to support the production of the VMC 1200 class 3 electric truck.
The company, in a statement, said the facility carries an interest rate of prime plus 2%, and is secured on Vicinity’s assets and enables the VMC 1200 to advance.
It can fund up to 100% of eligible production costs on the vehicle, excluding labor and overhead from Vicinity's assembly plants, the company highlighted.
At the same time, Vicinity noted that RBC continues to provide the company with an existing C$10mln asset-backed facility and an existing US$3mln letter-of-credit facility.
"This credit facility expansion enables Vicinity to take advantage of more favorable market conditions and provides us with the working capital necessary to monetize our significant 1,100-unit order backlog for the VMC 1200 electric truck as we ramp production in 2023, while maintaining critical funding for existing bus orders," said Vicinity chief executive and founder William Trainer.
????The VMC 1200 features cutting-edge Li-Ion #battery #technology that provides up to 150 kWh of power.
???? Learn more about VMC here ➟ https://t.co/WHiYXiT5nP
NASDAQ: $VEV | TSX-V: $VMC#ElectricTruck #EV pic.twitter.com/sHex9EyUnX
— Vicinity Motor Corp. (TSX-V:VMC) (NASDAQ: VEV | TSX-V: VMC) (@VicinityMotor) February 16, 2023
"We appreciate the strong support and confidence provided by Royal Bank of Canada (TSX:RY) and Export Development Canada, helping to enable Canadian companies like Vicinity to be the drivers of a more sustainable future.
“This financing will help to fuel our growth strategy, with the goal of building long-term value for our shareholders."