LOS ANGELES - GreenPower Motor Company Inc. (NASDAQ: GP) (TSXV: GPV), a manufacturer of zero-emission electric vehicles, announced today its plans to conduct an underwritten public offering of its common shares and potentially pre-funded warrants. The company stated that the securities sold will be entirely offered by GreenPower.
The offering is being managed by ThinkEquity, serving as the sole book-running manager. In addition to the initial offering, GreenPower may grant ThinkEquity an option to purchase up to an additional 15% of the offered securities to cover any over-allotments within a 45-day period. However, the completion and terms of the offering are dependent on market conditions, and there are no guarantees regarding its size or successful execution.
GreenPower aims to utilize the net proceeds from this offering to boost the production of its all-electric vehicles, such as the BEAST school buses and EV Star commercial vehicles. Funds will also support product development and, if available, other general corporate activities.
The offering is being conducted according to a shelf registration statement on Form F-3, which was filed with the U.S. Securities and Exchange Commission (SEC) on December 21, 2023, and declared effective on February 2, 2024. The offering will only be made through a written prospectus, with a preliminary prospectus supplement and the accompanying prospectus filed with the SEC. These documents provide further details about the offering and GreenPower's business operations.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy GreenPower's securities, and there will be no sales in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of those jurisdictions.
Based in Vancouver, Canada, with operational facilities in southern California, GreenPower designs and distributes a range of high-floor and low-floor electric vehicles. Their clean-sheet design approach allows the integration of global suppliers for key components, facilitating standardization for maintenance and warranty requirements.
It should be noted that this article is based on statements from a press release, and the information provided is subject to change. Potential investors are advised to read the relevant documents filed with the SEC for a comprehensive understanding of the company and the offering.
In other recent news, GreenPower Motor Company reported robust first-quarter earnings, indicating a surge in demand for its electric vehicles, particularly school buses and specialty vehicles. The company ended the quarter with nearly $14 million in working capital and approximately $2 million available on its EDC facility. GreenPower anticipates delivering most orders by year-end, contributing to expected revenue increases in subsequent quarters, according to analysts.
Simultaneously, GreenPower secured a follow-on order from Washington University for 10 EV Star Passenger Vans, following an initial acquisition of five such vans two years ago. These vehicles will be used for student transportation across the university's campus.
In addition, GreenPower received orders for six electric school buses from its Arizona dealer, RWC Group. These orders, funded by the EPA Clean School Bus Program, will serve three different school districts within the state. These recent developments reflect GreenPower's strategic efforts to meet the growing demand for environmentally friendly transportation.
InvestingPro Insights
GreenPower Motor Company's recent announcement of a public offering comes at a critical time for the company, as revealed by recent InvestingPro data. The company's market capitalization stands at $32.14 million, reflecting its current position in the electric vehicle market.
InvestingPro Tips highlight some challenges facing GreenPower. The company is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors likely contribute to the decision to pursue a public offering to raise capital for production expansion and product development.
Despite these challenges, GreenPower has shown a "significant return over the last week," with a 22.5% price increase, and a strong 32.43% return over the last three months. This recent positive momentum could potentially boost investor interest in the offering.
However, it's important to note that analysts anticipate a sales decline in the current year, with revenue growth showing a substantial decrease of -53.79% over the last twelve months. The company's gross profit margin is also relatively weak at 11.3%, which aligns with the InvestingPro Tip indicating that GreenPower "suffers from weak gross profit margins."
For investors considering GreenPower's offering, it's worth noting that the stock "generally trades with high price volatility." This volatility, combined with the company's current financial situation, underscores the importance of careful consideration before investing.
InvestingPro offers 13 additional tips for GreenPower Motor Company, providing a more comprehensive analysis for potential investors interested in this electric vehicle manufacturer.
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