GreenPower Converts $10M in Loans to Convertible Debentures and Preferred Shares
GreenPower Motor Company announced it converted $7 million in loans into convertible debentures and $3 million into Series B Convertible Preferred Shares, strengthening its capital structure.
$10 million
$0.99 per share
9% per annum
What Happened
GreenPower Motor Company Inc., a manufacturer of all-electric medium and heavy-duty vehicles, announced that it has converted US$7 million of principal and accrued interest of outstanding loans into convertible debentures and US$3 million of loans into Series B Convertible Preferred Shares. The debentures have a three-year maturity and bear interest at 12% per annum, while the preferred shares carry a 9% dividend rate. The transactions involve related parties and are exempt from certain minority shareholder protections under Canadian securities laws.
$10 millionUSD
Loans converted into convertible debentures and preferred shares.
“GreenPower has successfully converted $7 million of loans into secured convertible debentures and $3 million of loans into Series B Convertible Preferred Shares, further strengthening our capital structure and reinforcing our commitment to sustainable transportation solutions.”
GreenPower issued 641,025 shares to FWP Acquisition.
GreenPower issued 403,225 shares to CEO Fraser Atkinson.
GreenPower issued secured debentures and Series B Convertible Preferred Shares to related parties.
GreenPower announced the conversion of $10 million in loans into debentures and preferred shares.
Why this matters
This debt conversion improves GreenPower's financial footing as it pursues new manufacturing opportunities in New Mexico, helping the electric vehicle maker secure funding without issuing new equity.
Terms in This Story
- Convertible debenture
- A type of debt that can be converted into common shares at a predetermined price.
- Convertible preferred shares
- Preferred shares that can be exchanged for a fixed number of common shares.
- Related party transaction
- A business deal between a company and one of its insiders or affiliates.
- Early warning report
- A regulatory filing disclosing ownership changes when a shareholder's stake crosses certain thresholds.
Summarised from the linked release; details can be imperfect — always verify against the original source.