Vicinity Motor Corp, a North American provider of commercial electric vehicles, has announced it has received $30 million in financing commitments from Royal Bank of Canada and Export Development Canada to support the construction of the VMC1200 Class 3 light duty battery electric truck.
The credit commitment of $30 million is intended for use with Vicinity’s VMC1200 all-electric class 3 truck and can be utilised for up to 100% of qualified vehicle manufacturing expenses, excluding labour and overhead from Vicinity’s assembly plants. The interest rate on this new facility will be prime + 2%, and it will be secured by the Company’s current assets.
“This new Ucredit commitment with our partners at Royal Bank of Canada and Export Development Canada will prove invaluable as we begin to ramp VMC1200 production, providing us with the working capital necessary to monetise our significant 1,100-unit order backlog,” said William Trainer, Founder and Chief Executive Officer of Vicinity.
“The VMC1200 is a truly revolutionary vehicle and will prove to be a transformational product for Vicinity - the demand we have seen to-date is incredible. Deliveries and upfitting of the VMC 1200 will be facilitated from our Aldergrove, British Columbia and Ferndale, Washington production facilities.
”Vicinity is well positioned to capture share in a growing market, following the draft legislation for light-duty vehicles that was proposed in Canada on 21 December, requiring automakers and importers to meet zero-emissions vehicle sales quotas. I would like to personally thank our investors, as wellas the Royal Bank of Canada and Export Development Canada, for their continued support as we strive to deliver long-term value for both our shareholders and customers,” Trainer added.
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