GreenPower Motor Company Inc. announced a securities purchase agreement to issue up to $18 million of Series A convertible preferred shares. The preferred shares carry a 9 % annual dividend and can be converted into common stock at either 105 % of the stated value or 125 % of the closing price of the common shares on the day before issuance, giving investors a clear upside while providing the company with immediate cash.
The capital raise is earmarked for accelerating the production of GreenPower’s all‑electric school bus lineup, including the Nano BEAST and BEAST models. The company has already pre‑built more than 100 Nano BEAST chassis and 30 BEAST chassis, and the new funding will help convert the company’s record backlog into deliveries. Tranches of up to $2 million will be released as production milestones are met, allowing the company to match cash inflows with the timing of manufacturing and sales.
GreenPower has been under liquidity pressure and faces a Nasdaq delisting threat because its bid price and equity levels fall below the exchange’s minimum thresholds. The $18 million facility provides a critical cash cushion that can be deployed in line with production timing, improving the company’s cash conversion cycle and supporting its ramp‑up at the West Virginia and California facilities. The infusion also signals to investors that the company is taking concrete steps to address its financial fragility.
While the financing delivers short‑term liquidity and enables faster revenue recognition, it also dilutes existing shareholders and does not eliminate the company’s broader financial challenges. GreenPower must still demonstrate a sustainable path to profitability, manage production costs, and secure long‑term sales contracts to convert the capital into lasting earnings growth.
The move represents a significant step toward stabilizing operations and maintaining production momentum amid ongoing market and regulatory pressures. It underscores the company’s commitment to scaling its electric bus platform while highlighting the need for continued cost discipline and strategic execution to overcome the competitive and capital‑intensive nature of the commercial EV market.
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