VANCOUVER - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a North American supplier of commercial electric vehicles, has signed a new distribution agreement with RJames Management Group Ltd. This partnership aims to establish RJames Vicinity Truck, a dealership that will serve the Kamloops and Kelowna regions in British Columbia, Canada.
The agreement will see RJames Vicinity Truck distribute Vicinity's VMC 1200 electric vehicles, targeting the last-mile class 3 electric truck segment. RJames Management, which has its roots in a family dealership, is recognized for its full-service commercial truck dealer group and represents brands like Western Star, Freightliner, and AutoCar across six locations in Western Canada.
Brent Phillips, President of Vicinity Motor Corp., expressed enthusiasm about the partnership, highlighting the professionalism and enthusiasm of the RJames team. He also noted the opportunity for RJames to tap into a new market segment with the VMC 1200.
Rob James, Founder of RJames Management Group, shared his excitement about bringing a leading class 3 commercial truck to the market and the potential for established customers to transition to electric truck operations. He anticipates a positive market response and a strong business foundation through this collaboration with Vicinity.
Deliveries of the trucks are set to begin this week, with the RJames team prepared to showcase and demonstrate the vehicles at a local tradeshow.
Vicinity Motor Corp. is known for supplying electric, CNG, and clean-diesel Vicinity buses, as well as the VMC 1200 electric truck to transit and industrial markets. The company leverages a dealer network and manufacturing partnerships to provide these vehicles.
This news is based on a press release statement.
InvestingPro Insights
In light of Vicinity Motor Corp.'s latest distribution agreement, insights from InvestingPro offer a deeper look into the company's financial health and market performance. With a market cap of approximately $31.94 million and a significant quarterly revenue growth of 150.27% in Q1 2023, Vicinity appears to be expanding its market presence. Despite this growth, the company operates with a substantial debt burden and is quickly burning through cash, which is reflected in its negative P/E ratios of -1.96 and adjusted -2.5 for the last twelve months as of Q4 2023.
The company's stock has experienced high volatility and has recently underperformed, with a one-month price total return of -22.3%. This could be concerning for potential investors considering the company's weak gross profit margins of 11.21% and the fact that analysts do not expect Vicinity to be profitable this year. Moreover, the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income streams.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available that could shed light on Vicinity's ability to make interest payments on its debt, along with its valuation implications concerning free cash flow yield. To explore these insights further, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 11 additional tips listed in InvestingPro that can provide a more nuanced understanding of Vicinity's financial situation and market potential.
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