GreenPower Announces Closing of the First Tranche of Private Placement of Convertible Debentures

GreenPower Motor Company (TSXV:GPV) has announced the closing of the first tranche of the non-brokered private placement of convertible debentures for gross proceeds of $1.47 million.
As quoted in the press release:

Three of the directors of the Company participated in Financing for aggregate proceeds of $1,425,000. The Company is seeking approval from the TSX Venture Exchange (the “Exchange“) to increase the amount of the Financing from $2,000,000 to $3,000,000.
The terms of the Debentures include:

• the Debentures mature four years after issuance (the “Maturity Date“), and the principal amount of the Debentures, together with accrued and any unpaid interest, will be payable on the Maturity Date;

• the Debentures bear interest (“Interest“) at the greater of 8% per annum or BMO bank prime rate of lending plus 2.5% per annum, which Interest will be payable monthly in cash;

• the principal amount of the Debentures is convertible into common shares of the Company (each, a “Share“) at a price of $0.40 per Share at any time until the Maturity Date;

• the Company has issued 3,690,000 non-transferrable common share purchase warrants (each, a “Warrant“), with each Warrant exercisable into one Share for a period of four years at an exercise price of $0.50 per Share, subject to adjustment; and

• the Company may, at any time after the second anniversary of the issuance date and prior to the Maturity Date, repay the principal amount and any accrued and unpaid Interest of the Debentures.

The Shares issuable upon conversion of the Debentures or exercise of the Warrants are subject to a statutory hold period expiring on January 26, 2018. The closing of Financing has been approved by the Exchange.
After paying the costs of the Financing, the net proceeds will be primarily used for the production of EV350 all-electric transit buses connected to its previously announced order from the City of Porterville.

Click here to read the full press release.