Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,) BUSXF at US OTC
Market cap at time of publication: $225 MCAD
Stock price at time of publication: $7,67 CAD ( reverse split price 2,55 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $500 MCAD
The latest large order announced today (19/4) by Vicinity Motors is for 15 CNG buses from a leading Canadian provincial public transportation provider. The 30-foot Vicinity™ buses are powered by compressed natural gas (“CNG”). VMC says they expect delivery of the buses in the first half of 2022 which further strengthens the backlog of the company since revenues are recognized upon delivery of vehicles.
The company issued the following statement with the press release:
“We are pleased to have secured this substantial supply agreement with one of our long term transit customers. We continue to leverage our strong brand reputation throughout the Canadian market to sell CNG buses and position ourselves for wider adoption of clean tech vehicle offerings in the future,” said William Trainer, President and Chief Executive Officer of VMC. “We will continue to strive towards expanding market adoption of our clean-burning CNG and fully electric bus lines, driving forward the transition to a more sustainable public transportation system. I look forward to continued operational execution in the months ahead, helping to create long-term value for our shareholders.”
ESG Comment: We find it very promising that VMC already has another order worth 23 % of the entire revenues for 2020 booked for 2022. The company strangely enough continues to trade at a considerable discount to peers. The evaluation right now if the turnover for 2021 stays at $50MUSD with no further orders delivered as of today would be 3 X sales for 2021. In comparison their peer Greenpower motor has an evaluation right now of 33 X sales for 2021. Vicinity Motors Corp has also recently announced several impressive contracts and agreements which may increase sales in 2021 and beyond to a higher level than I’ve previously mentioned
I own shares of this company personally.
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