Vicinity Motor Corp. Provides Corporate Update and 2022 Financial Guidance of $140 million sales – 538 % increase compared to 2020!

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , NASDAQ
Ticker: VMC.V & VEV
Market cap at time of publication: $207 MCAD
Stock price at time of publication: $6,71 CAD ( reverse split price 2,23CAD)
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 $350 MCAD

ESG comment: For the financial year of 2020 Vicinity motors recorded sales of 26 million CAD. For the financial year of 2021 ESGFIRE estimates that sales will increase close to 100 % to about 45-55 million CAD. We are therefore extremely pleased to see that the company themselves now project a 538 % increase in sales from 2020 sales numbers of 26 million CAD to 140 million CAD for 2022. This is a remarkable growth which shows how high the demand is for Vicinity Motor corps vehicles that stand best in class and best value for money. We believe this is only the beginning of the company’s growth journey in the electric vehicles sector and we would not be surprised to see 250-300 million CAD in sales going into 2023 barring any unforeseen mishaps. The US facility in Washington that can produce Buy America compliant vehicles is estimated to begin operations in mid 2022. Financial year 2022 Adjusted EBITDA is expected to be over $10 million with significant potential upside according to the companys press release below. It’s very reassuring to see that Vicinity Motors estimates that profits will return in 2022 and we estimate these will increase as they go into larger mass production. Once again Vicinity Motor proves why they are the ESGFIRE’s top pick in the electric vehicles sector and ,according to us, tremendously undervalued to peers at an evaluation of just 1,5X 2022 sales.

VANCOUVER, BC – October 12, 2021 – Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) (FRA:6LGA) (“Vicinity Motor” or the “Company”), a leading North American supplier of commercial electric vehicles, today provided a corporate update and financial guidance for 2022.

Through the year ending December 31, 2022, Vicinity Motor expects to complete deliveries of over 95 Vicinity™ Classic buses, 75 Vicinity Lightning™ EV buses and chassis, 200 VMC 1200 EV trucks, and 300 Vicinity Optimal EVs to drive year end revenues of over $140 million. FY 2022 Adjusted EBITDA is expected to be over $10 million with significant potential upside.

The Company expects to deliver over 130 Vicinity™ Classic buses during 2021. Consistent with other manufacturing and transportation companies, Vicinity Motor continues to experience temporary delays from some suppliers and shipping companies which has delayed over 20 buses now expected to be delivered in 2022 rather than 2021.

“Ongoing sales activities across our vehicle lines have positioned us for a strong 2022,” said William Trainer, Chief Executive Officer of Vicinity Motor Corp. “Based on our existing backlog and large pipeline, we expect a strong cadence of sales growth into 2022 with additional near-term customer orders. To support this significant demand, our Washington State assembly facility is expected to begin operations by mid-2022 – beginning the ramp of U.S.-made vehicles.

“Our recent exclusive reseller agreement with Optimal EV, and collaboration agreement with the JB Poindexter business unit, EAVX, will also begin to drive revenue growth in the new year. We look forward to continuing to deliver record-breaking financial results and sales of both our classic and new lines of breakthrough electric buses and trucks. I have never been more confident about the future and potential for long-term shareholder value creation at Vicinity Motor Corp.,” concluded Mr. Trainer.

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