Vicinity Motor Corp. (VEV) stock prices were down by 17.17% shortly after market trading commenced on October 21st 2021. This brought the price per share down to USD$4.15 early on in the trading day.
VEV Stock’s Public Offering
October 21st 2021 saw VEV stock announce its underwritten public offering of shares of its common stock, as well as warrants for common shares. The company is selling 3,990,610 units of the company as a part of the offering, with each unit being priced at USD$4.26. Gross proceeds expected to be generated by the undertaking of the public offering are USD$17 million. Each unit will consist of one common share of the company, as well as one half of one common share purchase warrant.
Details of the Offering
Holders of each warrant will be entitled to purchase one common share at an exercise price of USD$5.10. This price is subject to adjustment in certain circumstances, with the warrants being exercisable immediately upon issuance. These warrants will expire three years from the Issuance Date. VEV stock plans to allocate the net proceeds generated from the offering towards the USD$123 million portion of the license fee payable to Optimal-EV. The ramining net proceeds will be put towards general corporate purposes, which will include new product development and certifications. The funds will also be used for new product demonstration models, the expansion of production capacity, as well as general working capital. The offering is expected to close on or around October 25th 2021.
Collaboration with Electrovaya
October 13th 2021 saw VEV stock announce the formation of a strategic supply agreement with Electrovaya. The agreement is for the supply of battery systems for the company’s line of Vicinity Lightning EV buses and fully electric VMC 1200 Class 3 trucks. The partnering company is a leader in the global energy transformation with a particular focus on contributing to the prevention of climate change. This is facilitated by ongoing efforts to supply safe and long lasting Lithium-ion batteries.
Future Outlook for VEV Stock
VEV stock is poised to capitalize on the opportunities afforded to it as a result of the expanded capital at its disposal from the upcoming offering. The company is taking steps to continue its trajectory of success in a bit to usher in unprecedented growth. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.