- The stock price of Vicinity Motor Corp (NASDAQ: VEV) fell by over 15% pre-market today. This is why it happened.
The stock price of Vicinity Motor Corp (NASDAQ: VEV) – a leading North American supplier of commercial electric vehicles – fell by over 15% pre-market today. Investors are responding positively to the company announcing an underwritten public offering of 3,990,610 units of the company at a price of US$4.26 per Unit for gross proceeds to the Company of approximately US$17 million.
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of US$5.10, subject to adjustment in certain circumstances. These warrants will be exercisable immediately upon issuance and will expire three years from the Issuance Date.
Vicinity Motor plans to use the net proceeds from the Offering for the US$12 million portion of the license fee payable to Optimal-EV with the remaining net proceeds to be used for general corporate purposes, including new product development and certifications, new product demonstration models, expansion of production capacity and general working capital.
Spartan Capital will receive underwriting commissions equal to 7% of the gross proceeds raised in the Offering, which will be equal to approximately US$1.19 million.
This offering is expected to close on or about October 25, 2021, subject to the satisfaction of customary closing conditions.
Spartan Capital Securities, LLC is acting as sole book-running manager for the offering. And Revere Securities LLC is the exclusive selling group member for the offering.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.