Greenpower Motor Company has filed an F-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. Although this IPO is not for much, it’s still enough to bring this company public. The firm intends to offer 1.5 million shares at a proposed price of $24. Also, there is an overallotment option for an additional 225,000 shares. At this price, the entire offering is valued up to $41.4 million.
It’s worth pointing out that this company is already public and trades on the over-the-counter venture market (OTCQB) and the Toronto Stock Exchange. This offering is so this company can tap the U.S. markets for capital.
The underwriters for the offering are B. Riley FBR, Roth Capital Partners, ThinkEquity, Maxim Group and PI Financial. The company intends to list its shares on the Nasdaq under the symbol GP.
This firm is a designer, manufacturer and distributor of a broad-based line of battery-electric high-floor and low-floor vehicles, including transit buses, school buses and shuttle buses, among others. It employs a clean-sheet design to manufacture all-electric buses that are purpose-built to be battery powered with zero emissions.
Greenpower Motor integrates global suppliers for key components, such as Siemens or TM4 for the drive motors, Knorr for the brakes, ZF for the axles and Parker or I/O Controls for the dash and control systems. This original equipment manufacturer platform allows the firm to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements.
One concerning factor the company mentioned in its filing was this:
We have not yet established an ongoing source of revenues sufficient to cover our operating costs and to allow us to continue as a going concern. As of March 31, 2020 we had an accumulated deficit of $(23,852,634). Our ability to continue as a going concern is dependent on our company obtaining adequate capital to fund operating losses until we become profitable. If we are unable to obtain adequate capital, we could be forced to significantly curtail or cease operations. In its report on our financial statements for the year ended March 31, 2020, our auditors included an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The company intends to use the net proceeds from the offering for the production of its electric vehicles. The remainder would be used for working capital and general corporate purposes.