Vicinity Motor Corp. (TSX-V:VMC), a leading supplier of electric, CNG, and clean diesel vehicles, announced that it has closed its non-brokered financing of unsecured debenture units in the principal amount of C$10,300,000.
The Vancouver, British Columbia-based company said it 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 C$985 per unit and consisted of one 8% unsecured debenture in the amount of C$1,000 with interest payable on maturity 12 months from the date the issue of the debentures and 40 share purchase warrants expiring 12 months after the date of issuance of such warrants, said the company.
READ: Vicinity Motor announces C$10M non-brokered financing of unsecured debenture units
The debentures will be repaid in cash at maturity, added the firm. Each warrant will entitle the holder to purchase one 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, subject to adjustment in certain events.
The debentures, in whole or in part, will be convertible into common shares at the option of the holder only if there is an event of default that is uncured for a period of 10 business days, 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 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 shares issuable on the exercise of the warrants or conversion of the debentures will be subject to a statutory resale restriction expiring on February 5, 2022, said Vicinity. The company received TSX Venture Exchange approval to close the offering and issue the debentures and warrants.
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