Vicinity Motor Corp. (VEV) Stock Plunged 28.57% Today, Here’s Why

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Vicinity Motor Corp. (VEV) stock plummeted 28.57% in the current-market trading session at the price of $2.40 following the announcement of a $12M direct offering.

VEV, located in North America, is a leading electric vehicles firm that produces and supplies vehicles for personal and commercial use. The company leverages close affinities with world-renowned manufacturers to commercialize its EVs.

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VEV US$12M Direct Offering

On 24th March 2022, VEV reported entering definitive deals with several accredited and institutional investors. The agreement intends to sell and purchase 4.44 million shares and warrants to purchase up to 4.44 million common shares at $2.70 per share in a direct offering. The offering is expected to close on 28th March 2022 and is subject to customary closing conditions.

VEV expects roughly $12M in gross proceeds from offering before removing agent fees and other costs. The company plans to use the proceeds for its manufacturing facility in Ferndale, Washington. The offered warrants have an exercise price of $3.36 per share and will be exercisable six months following the closure. They will expire three years after the date of issuance.

VEV Partnered With DATTCO

Earlier on 17th March 2022, VEV announced signing a strategic distribution deal with DATTCO, a passenger conveyance firm in the United States. The agreement intends to supply vicinity autos across the North-eastern U.S. Under the contract, DATTCO will support the distribution of vicinity cars across New England. DATTCO has already placed the first order worth US$2M for several electric vehicles.

Management Comments

CEO of VEV, William Trainer, remarked that this agreement with DATTCO will extend their reach to the North-eastern U.S. DATTCO’s vast client base wants sustainable solutions to meet their conveyance needs. They are eager to deliver advanced EVs to consumers and are hopeful they will be impressed with their wide range of electric vehicles. They look onward to collaborating with the DATTCO management team in the coming future. 

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