VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 3, 2014) - Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company") is pleased to announce the purchase orders for 4 Vicinity buses by Veolia Transdev Quebec Inc. comprised of 3 new buses and the purchase of the existing Vicinity demonstration bus.
These 3 new Vicinity buses will be added to the current in-progress production run of 12 buses. The revenue of $3.8 million for the sale of these 15 Vicinity buses is to be recognized when delivery acceptance occurs which is scheduled for the 3rd quarter ending May 31st of fiscal 2014. The sale of the existing Vicinity demonstration bus will be recorded in February, the 2nd quarter of fiscal 2014. Of the 15 Vicinity buses, 12 are for Quebec and 3 for a Nova Scotia transit authority as a result of recent sales efforts.
Due to the sale of the existing Vicinity demonstration bus, 3 new demonstration buses including a new 30 foot model with 2 doors have been added to the current production run. These 3 Vicinity buses will be utilized for marketing and customer testing in key markets across the country.
The 30 foot Vicinity bus has been specifically designed for the needs in the Ontario transit market. This bus will be demonstrated in Ontario, being Canada's largest transit market, and also will be utilized as a demonstration Vicinity bus for airport shuttle bus applications.
About Grande West Transportation Group Inc.
Grande West was formed in 2008 to design and develop a 27.5 foot bus, known as the "Vicinity." With little competition in the "mid-size" bus range, Grande West has set itself apart from others with its Vicinity bus - a heavy duty mid-size, true community transit bus.
The Vicinity is designed with affordability, accessibility and global responsibility in mind. It costs half the amount as a 40 foot transit bus, burns less fuel, emits less harmful environment emissions and achieves a life span twice as long as cut-away buses with less maintenance costs.
In a large and unsaturated market, Grande West is poised to capture growth in both the replacement of cut-away buses and better bus size utilization on transit routes across Canada and the United States.
Initial deliveries of 15 Vicinity buses occurred in August 2013 to BC Transit. Currently production is underway for 12 Vicinity buses for Quebec and 3 Vicinity buses for a Nova Scotia transit authority, resulting from recent sales efforts. For marketing and customer testing, 3 Vicinity demonstration buses are also in the current production run including a new 30 foot model for the Ontario market and for airport shuttle bus applications.
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This news release may contain "forward-looking" statements that involve known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Company or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, these statements may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan" and other terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Except as required by law, we assume no obligation to update or revise forward-looking statements to reflect new events or circumstances. Additional information is available in the Company's Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com.