VANCOUVER – Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a supplier of commercial electric vehicles in North America, announced today that it has received a new purchase order from the Corporation of the Town of Orangeville, Ontario, for two Vicinity™ Classic buses. These buses are scheduled for delivery in 2025 and will be servicing the town's three active transit routes.
The purchase is part of Orangeville's efforts to enhance its public transportation system. With a population of approximately 30,000, the suburb is looking to provide efficient and value-driven transit solutions for its residents.
Vicinity Motor Corp.'s President, Brent Phillips, commented on the deal, emphasizing the company's strong brand recognition and the role of the Vicinity Classic buses in its revenue strategy. He noted that the buses' lower upfront and operational costs make them an attractive option for communities seeking economical transit solutions.
Phillips also indicated that each new order presents an opportunity to discuss the expansion of fleets or a transition to electric models, like the Vicinity Lightning electric transit bus and the VMC 1200 Class 3 electric truck. Vicinity Motor Corp. is poised to continue collaborating with Orangeville in anticipation of the early delivery next year.
Vicinity Motor Corp. operates through a dealer network and partnerships with manufacturing entities to provide a range of vehicles, including electric, CNG, and clean-diesel buses, as well as electric trucks to the transit and industrial markets.
This news is based on a press release statement from Vicinity Motor Corp. and reflects the company's current expectations and projections. It is important to note that forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from future results expressed or implied by such statements.
In other recent news, Vicinity Motor Corp. has been making significant strides in the commercial electric vehicle sector. The company reported a substantial 400% revenue surge in Q1 2024, driven by the delivery of 44 VMC 1200 electric trucks and 22 Vicinity Classic clean diesel buses, despite a net loss of $3.7 million.
Moreover, Vicinity Motor Corp. recently appointed Jeff Madura as Senior Director of Sales, a move expected to bolster the company's sales efforts in the growing electric vehicle market. Madura, with his extensive experience in the commercial vehicle industry, is anticipated to enhance Vicinity's market position.
In product news, the company's VMC 1200 all-electric truck has successfully met all Federal Motor Vehicle Safety Standards, allowing it to be legally sold in the United States. This certification, coupled with the completion of U.S. Environmental Protection Agency Vehicle Certification and Compliance Testing, opens up new market opportunities for Vicinity across the United States.
Furthermore, Vicinity exhibited its VMC 1200 Class 3 Electric Truck at the Advanced Clean Transportation Expo, marking the company's third consecutive year at the event. This exposure is expected to expand the company's presence in the U.S. market.
These are recent developments that highlight Vicinity Motor Corp.'s ongoing efforts to strengthen its position in the commercial electric vehicle sector.
InvestingPro Insights
As Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) secures a new order for its Vicinity Classic buses, the financial landscape of the company provides a nuanced picture of its market position. With a market capitalization of $28.93 million, the company reflects a relatively small player in the industry.
Despite a notable revenue growth of 65.18% in the last twelve months as of Q1 2024, VEV's financial health is challenged by a significant debt burden and weak gross profit margins of just 11.97%. These figures, coupled with a high price volatility in its stock trading, underscore the risks associated with investing in the company.
One of the InvestingPro Tips highlights that the company's short term obligations exceed its liquid assets, which raises concerns about its liquidity and ability to meet immediate financial obligations. Moreover, analysts do not expect Vicinity Motor Corp. to be profitable this year, with a negative P/E Ratio of -1.65, suggesting that investors are wary of the company's earning potential in the near term. The stock's recent performance has been underwhelming, trading near its 52-week low and experiencing a one-month price total return of -14.49%.
For potential investors and current shareholders, these insights may be crucial for making informed decisions. To delve deeper into Vicinity Motor Corp.'s financials, interested parties can access additional InvestingPro Tips on https://www.investing.com/pro/VEV. There are 12 more tips available, offering a more comprehensive understanding of the company's financial health and market outlook.
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