GreenPower Motor Company Inc., a prominent producer and distributor of all-electric, specially designed, zero-emission medium- and heavy-duty vehicles for the school bus, shuttle, and transit industries, as well as the cargo and delivery market, has announced the fourth tranche of its previously announced secured term loan offering, which has a total principal amount of $200,000. Regarding the term loan offering, please see the news release issued by the company on May 13, 2025.
The company expects to close the fourth tranche, which consists of U.S. $200,000 from businesses connected to the CEO and a director. The company’s management expects the net proceeds from the loans to be used for working capital, payroll, supplier payments, and production expenses.
In exchange for the loans, the company will give one of the lenders non-transferable share purchase warrants. The number of Loan Bonus Warrants will be calculated by dividing the principal amount of the relevant loan by the market price (as defined by the TSX Venture Exchange’s policies). For a duration of twenty-four (24) months, each Loan Bonus Warrant holder will be entitled to buy one common share of the company (each, a “Share”) at an exercise price equal to the Market Price of the Shares on the closing day. Additionally, one of the lenders will get shares. The number of Loan Bonus Shares will be calculated by dividing the market price by 20% of the principal amount of the relevant loans.
The Lenders are all regarded as “related parties” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Each Loan and the issuance of Loan Bonus Warrants and Loan Bonus Shares, as applicable, are also regarded as “related party transactions” under MI 61-101. However, each is exempt from the formal valuation requirement and minority approval requirements of MI 61-101 due to the exemptions found in sections 5.5(a) and 5.7(a), as the fair market value of the Loans, the Loan Bonus Warrants, and the Loan Bonus Shares, as applicable, does not exceed 25% of the Company’s market capitalization.
According to relevant securities laws, any securities issued in conjunction with the Loans will be subject to a statutory hold period of four months plus one day from the conclusion of the Initial Loan.
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