SOURCE: GreenPower Motor Company Inc.

GreenPower Motor Company Inc.

May 25, 2016 09:00 ET

GreenPower Enters Into Agreement to Acquire Property in Porterville, CA

Permit Application Submitted for a Manufacturing Facility of Approximately 150,000 Square Feet

VANCOUVER, BC --(Marketwired - May 25, 2016) - GreenPower Motor Company Inc. (TSX VENTURE: GPV) (OTCQB: GPVRF) ("GreenPower"), announced today that GreenPower has entered into an agreement with the City of Porterville in California to acquire a 9.3 acre property for $660,000. The closing of this transaction is expected to occur in 45 days with a payment of $66,000 by GreenPower to the City of Porterville and the balance payable pursuant to a Promissory Note with an amortization period of ten years, a term of five years and bearing interest at the rate of 2% per annum. The closing of the purchase is subject to usual closing conditions.

GreenPower has submitted a permit application to the City of Porterville for a manufacturing facility for its all-electric buses on this property for approximately 150,000 square feet of buildings including 6,000 square feet of office space. The City of Porterville has provided GreenPower with its initial comments on this application. GreenPower has also been working with a manufacturer of modular buildings for the construction of the buildings on this site. The Company intends to build the facility in compliance with "Buy America," a program of the American Recovery and Reinvestment Act of 2009 to take advantage of certain tax breaks and incentives.

"We are very excited about locating in Porterville, having the necessary manufacturing capabilities for Buy America compliance and being positioned to pursue market opportunities in California," stated Fraser Atkinson, Chairman of GreenPower. "We understand that we will be the only manufacturer of all-electric heavy duty buses in the San Joaquin Valley so we will be seeking to become the preferred supplier."

The City of Porterville is located in the San Joaquin Valley (SJVAPCD) air basin and is actively pursuing diesel bus emission control strategies in conjunction with ongoing funding and grants from the U.S. Environmental Protection Agency, California State Diesel Emissions Reduction Act (DERA) and the Air Resources Board (ARB).

About GreenPower Motor Company Inc.

GreenPower Motor Company Inc. develops electric powered vehicles for commercial markets. GreenPower offers a range of electric powered buses deploying electric drive and battery technologies with a lightweight chassis and low floor or high floor body. GreenPower's bus is based on a flexible clean sheet design and utilizes a custom battery management system and a proprietary Flex Power system for the drive motors. GreenPower sources and integrates key vehicle components from global suppliers, such as Siemens for the two drive motors, Knorr for the brakes, ZF for the axles and Parker for the dash and control systems. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. For further information go to www.greenpowerbus.com.

Forward-Looking Statements

This document contains forward-looking statements relating to, among other things, GreenPower's business and operations and the environment in which it operates. Forward- looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward- looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding GreenPower's expectation that it can complete the acquisition of the property within the 45 day period or at all and GreenPower's expectation that it will substantially complete the permitting process for the manufacturing facility within 45 days or at all. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond GreenPower's control. These risks include the risk that: GreenPower may not have the capital necessary to complete the acquisition or make the payments due under the Promissory Note; GreenPower may not receive all necessary approvals to build the manufacturing facility; GreenPower may not receive all necessary compliance approvals from the U.S. Department of Transportation and/or the State of California; GreenPower's business may not develop as expected; GreenPower may not have the capital necessary to complete the manufacturing facility; the regulations and compliance standards may change such that GreenPower would not able to supply buses in the required timeframe or at all; and such other risks and factors beyond the control of GreenPower. A number of important factors including those set forth in GreenPower's public filings (filed under GreenPower's profile on www.sedar.com) could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. GreenPower disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release. All amounts in U.S. dollars © 2016 GreenPower Motor Company Inc. All rights reserved.

Contact Information

  • For further information contact:
    Fraser Atkinson
    Chairman
    (604) 220-8048