Vicinity Motor Corp has secured a new US$9 million credit facility from Export Development Canada, the company announced.
The credit is expected to fund working capital and capital expenditures as the company begins production of a VMC 1200 at its facility in Ferndale, Washington.
"We are pleased to finalize this highly complementary new credit facility, which provides us with greater financial flexibility to invest in Vicinity's next phase of growth," CEO William Trainer said in a statement. "EDC is a tremendous partner, structuring this new credit facility to both complement and supplement our existing US$30 million RBC Facility.
"With this new credit facility, we can fund a greater variety of production-related expenses.”
Trainer thanked the EDC team for their "vote of confidence" in the firm's ability to ramp the Ferndale facility to profitability.
"The entire team at Vicinity is looking forward to continuing operational execution in the months ahead with a view to revolutionizing the Class 3 work truck market and creating sustainable, long-term value for all our stakeholders.”
Vicinity Motor Corp is a leading supplier of electric, compressed natural gas (CNG), gasoline, and clean-diesel buses for both public and commercial enterprise use in the US and Canada.
The company began initial customer deliveries of the VMC 1200 electric truck in the fourth quarter.
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