GreenPower Motor Company announced that it has secured a $5 million credit facility from the Canadian Imperial Bank of Commerce (CIBC). The package consists of a $3 million revolving line of credit and a $2 million term loan with a three‑year maturity, providing the company with a flexible source of working capital while limiting long‑term debt exposure.
The company will use the proceeds to retire its existing operating line of credit and to fund general corporate purposes. Repayment of the older line will reduce the company’s short‑term borrowing costs and free up cash that can be directed toward ramping production of its all‑electric commercial vehicles, particularly school buses, at its West Virginia plant.
GreenPower has been operating with negative operating cash flow and an accumulated deficit, and it faces a Nasdaq delisting threat for failing to meet minimum bid‑price and financial‑condition requirements. The new credit facility is therefore a critical liquidity cushion that helps the company meet its immediate cash‑flow needs, support the expansion of manufacturing capacity, and mitigate the risk of delisting. By reducing reliance on short‑term credit, the company can focus on scaling production to fulfill existing customer orders and capture growing demand for zero‑emission school buses.
The financing also signals confidence from a major Canadian lender in GreenPower’s business model, which may improve investor perception of the company’s ability to navigate its current financial challenges and pursue its growth strategy. The additional working capital will enable the company to invest in production upgrades, manage inventory more efficiently, and maintain service levels for its growing customer base.
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