By Devika Patel
Knoxville, Tenn., May 1 – GreenPower Motor Co. Inc. said it plans to raise C$2 million in a non-brokered private placement of convertible debentures.
The convertible debentures mature in four years and may be converted into common stock at C$0.65 per share, which is an 8.33% premium to the April 28 closing share price of C$0.60.
The debentures bear interest at the greater of 8% or the prime rate plus 250 bps.
The debentures are callable after two years.
For each C$1,000 of debentures, investors will receive 1,538 warrants. Each three-year warrant is exercisable at C$0.75, a 25% premium to the April 28 closing price.
Countryman Investments Ltd. will invest C$1.65 million.
Proceeds will be used for production of electric buses, testing, compliance and certification, sales and marketing and general working capital.
The Vancouver, B.C., company develops electric powered vehicles.
| Issuer: | GreenPower Motor Co. Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$2 million
|
| Maturity: | Four years
|
| Coupon: | The greater of 8% or prime rate plus 250 bps
|
| Conversion price: | C$0.65
|
| Call option: | After two years
|
| Warrants: | 1,538 warrants per C$1,000 of debentures
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.75
|
| Agent: | Non-brokered
|
| Investor: | Countryman Investments Ltd. (for C$1.65 million)
|
| Pricing date: | May 1
|
| Stock symbol: | TSX Venture: GPV
|
| Stock price: | C$0.60 at close April 28
|
| Market capitalization: | C$56.45 million
|
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