VANCOUVER, BC - Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles in North America, has provided an update regarding its previously announced management cease trade order (MCTO). The British Columbia Securities Commission granted the MCTO on August 15, 2024, due to the company's delayed interim financial statements and related documents for the period ending June 30, 2024.
The MCTO restricts trading by the company's CEO and CFO until the required interim filings are submitted and the order is lifted. However, this order does not prohibit trading by shareholders. Vicinity Motor anticipates that the filings will be completed by October 11, 2024, aligning with the conclusion of its 60-day financial restructuring plan.
During this period, the company has committed to following alternative information guidelines, including bi-weekly status reports. An insider trading blackout is in effect until the interim documents are filed. Vicinity Motor confirms there have been no material changes or additional defaults since the initial announcement, nor is the company involved in any insolvency proceedings. The financial restructuring plan with secured lenders, disclosed on August 21, 2024, is underway.
Vicinity Motor Corp. specializes in electric, compressed natural gas, and clean-diesel buses, as well as the VMC 1200 electric truck, serving transit and industrial markets through a dealer network and manufacturing partnerships.
This news update is based on a press release statement and contains forward-looking statements regarding the expected completion of interim filings and the company's financial restructuring discussions. These statements are subject to various risks and uncertainties, and actual outcomes may differ materially from those projected.
In other recent news, Vicinity Motor Corp has been navigating a series of financial developments. The company is currently under a management cease trade order (MCTO) due to delayed interim financial filings. Vicinity Motor Corp is in the process of finalizing these filings and has imposed an insider trading blackout until the documents are public. The company has also initiated a financial restructuring plan to address outstanding credit facilities with its secured lenders.
Simultaneously, Vicinity Motor Corp has been showcasing its VMC 1200 Class 3 Electric Truck at the "Everything Electric Canada" show, demonstrating its commitment to promoting electric vehicles. The company has also secured orders for its Vicinity Classic buses from transit operators in Quebec and Ontario, Canada.
Despite facing financial challenges, Vicinity Motor Corp reported a 400% revenue surge in Q1 2024, largely due to deliveries of its electric trucks and clean diesel buses. The company's VMC 1200 electric truck has received certification as a zero-emission vehicle from the California Air Resources Board, enabling sales across all U.S. states. Furthermore, Vicinity Motor Corp's customers are now eligible for significant tax credits for purchasing its electric vehicles, following the company's approval as a "qualified manufacturer" by the United States Internal Revenue Service.
InvestingPro Insights
Vicinity Motor Corp. (NASDAQ:VEV), which is currently under a management cease trade order, is navigating through a challenging financial landscape. According to InvestingPro data, the company has a market capitalization of just 7.33 million USD, reflecting its small size in the competitive automotive sector. Notably, the revenue for the last twelve months as of Q1 2024 stands at 29.64 million USD, which represents a substantial growth of 65.18%. Despite this revenue growth, the company's gross profit margin remains low at 11.97%, indicating that Vicinity Motor Corp. is facing difficulties in translating sales into net income efficiently.
One of the InvestingPro Tips highlights that the company is trading at a low Price / Book multiple of 0.42, which could suggest that the stock is undervalued relative to its assets. However, this metric alone doesn't provide a complete financial picture, especially considering the company's significant debt burden and the fact that it is quickly burning through cash. Investors looking for further insights into Vicinity Motor Corp.'s financial health can find 16 additional InvestingPro Tips on the company's profile, which could offer a more comprehensive understanding of the risks and opportunities associated with the stock.
The recent performance of Vicinity Motor Corp.'s stock has been volatile, with a significant return over the last week of 22.16%, yet a dramatic three-month price total return decrease of -73.15%. The company's stock price is currently at 15.36% of its 52-week high, indicating a steep decline over the past year. This volatility is consistent with one of the InvestingPro Tips that points out the stock's tendency to trade with high price volatility.
For investors considering Vicinity Motor Corp. as a potential investment, it is crucial to weigh the promising revenue growth against the backdrop of the company's financial challenges and market performance. Detailed analysis and additional InvestingPro Tips can be accessed to provide a deeper dive into the company's prospects at InvestingPro Vicinity Motor Corp.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.