Vicinity Motor Corp said it has closed its previously announced registered direct offering for gross proceeds of approximately US$12 million, before deducting placement agent fees and expenses.
The financing consisted of 4,444,445 common shares and warrants to purchase up to 4,444,445 common shares at a combined purchase price of US$2.70 per unit.
The warrants are exercisable for 6 months from the closing of the offering at an exercise price of US$3.36 per common share and will expire three years from the initial exercise date. The closing of the offering occurred on March 28, 2022.
Vicinity Motor said it intends to use the proceeds for to complete the company's manufacturing facility in Ferndale, Washington.
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A.G.P./Alliance Global Partners acted as sole placement agent for the offering. A.G.P. received cash commission of 7% of the gross proceeds and 133,333 placement agent warrants exercisable following the initial exercise date at an exercise price of US$2.97 per common share and will expire two years from then
The common shares, warrants, placement agent warrants and underlying securities were qualified by way of a prospectus supplement dated March 23, 2022, under the company's base shelf prospectus dated April 19, 2021.
The offering was made in the United States only and no securities were offered or sold to Canadian purchasers.
Vicinity is a North American supplier of electric vehicles for both public and commercial enterprise use. It supplies its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus.
Contact the author at jon.hopkins@proactiveinvestors.com