GreenPower Motor Company Inc., a prominent manufacturer of purpose-built, all-electric medium and heavy-duty commercial vehicles, has officially closed the third tranche of its previously announced secured term loan offering, securing an additional $300,000 in funding.
The company confirmed that it has entered into loan agreements with entities controlled by its CEO and a Director, both classified as “related parties” under Multilateral Instrument 61-101. These loans, which are exempt from formal valuation and minority shareholder approval due to their size relative to market capitalization, are part of a broader effort to support ongoing operations.
Loan Terms and Use of Proceeds
The secured loans carry an annual interest rate of 12% and a two-year maturity from the closing date. The funds will be strategically allocated toward key areas including production costs, supplier payments, payroll, and overall working capital—an essential boost as the company navigates its expansion in the zero-emission transportation sector.
To secure the loans, GreenPower has granted a general security interest over its assets, subordinate to all existing senior debt. As an inducement to the lenders, the company has issued 340,909 non-transferable share purchase warrants, allowing the purchase of common shares at $0.44 each over a 24-month period. Additionally, one lender will receive 68,181 common shares as part of the loan bonus arrangement.
Regulatory Compliance
All securities issued under this transaction will be subject to a statutory hold period of four months and one day in line with applicable securities legislation. The company emphasized that all transactions comply with MI 61-101 and do not exceed 25% of its market capitalization, qualifying them for exemptions from enhanced shareholder protections.
As GreenPower strengthens its capital base, the company aims to reinforce its position across the cargo, delivery, transit, and school bus markets. The infusion of capital is expected to enhance its ability to meet production targets and scale its zero-emission vehicle offerings in line with growing demand for sustainable transportation solutions.
