(Nasdaq: VEV; TSX-V: VMC) announced that it has hired a new president, Brent Phillips, and plans to ramp up production at its new production facility in Ferndale, Washington.
The company, founded 16 years ago, employs 62 other people and spent $20 million in capital to build the new facility, which opened in August and had the first cars in distribution condition a month later, according to a presentation to investors.
Vicinity announces a $125 million delay and says its production plant has a capacity of 1,000 buses a year, full-scale, or 6,250 trucks.
So far, sales to businesses are a shadow of this.
The company’s fourth-quarter earnings report, released earlier this month, says it sold 11 electric buses in the period ended Dec. 31, helping quarterly profit reach $5. 1 million.
For the full year, the company generated profit of $19. 05 million, up from $18. 475 billion in 2022, according to its earnings report.
Its production in 2023 will be 22 buses and 66 trucks, the company told the BIV in an email.
Vimencement’s loss in 2023 increased to $16. 633 billion from a loss of $17. 746 billion last year.
The company said it billed dealers 71 electric trucks in December 2023, which were identified as 2023 revenue. These trucks are expected to be delivered this year.
Resolution by founder and CEO, William Trainer, to appoint Phillips to the newly created position of president.
The teacher retains his role as general director.
“Phillips will lead the sales, assembly, procurement and engineering teams, while obviously defining the direction and expansion of the company’s sales and operations programs,” the company said in a press release.
His plan for Phillips is to optimize production and increase vehicle sales in Vicinity’s Class 3 electric bus and midsize bus product lines, according to the company.
Phillips has more than 30 years of experience in the advertising transportation industry and has held leadership positions in distribution and manufacturing, in addition to operations, sales and marketing, the company said.
He joined Vicinity in 2021 as Senior Director of Sales and later rose to Vice President of Sales.
Prior to joining Vicinity, Phillips was CEO of Alliance Bus Group, a leading bus distributor.
He also served as Vice President of Sales within the REV Group’s Commercial Bus Group, where he was responsible for brands and distribution channels with two production plants generating more than 3,000 series annually.
Vicinity also announced that it has agreed to obtain an unsecured loan of US$2 million at an annual interest rate of 12 per cent from two independent parties.
The agreement calls for Vicinity to pay off the loan within a year of receiving the money. Vicinity can cancel the loan at any time without penalty, the company said.
“As additional relief to lenders for the granting of the loan, the company has agreed to factor 800,000 exercisable free warrants in customary percentages amounting to $1. 15 for a customary percentage over 12 months,” the company said in a separate press release.
The TSX Venture Exchange will have to approve the company that will factor the bonus warrants, he added.
The company’s stock price struggled, hitting a 52-week low of $0. 84 earlier this month. Its stocks rose 3. 45 percent to $0. 90 today.
Last summer, the value of the company’s inventory topped $1. 70.
The company changed the name of Grande West Transportation Group Inc. ‘s Vicinity Motor Corp. in March 2021, about a month after its shares reached a record final value of $11. 55.
It appeared on the Nasdaq that summer.
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