Vicinity Motor Corp. announced that it has secured USD 30 million in credit commitments from Royal Bank of Canada (RBC) and Export Development Canada to fund production of the Company's VMC 1200 class 3 electric truck. The USD 30 million credit commitment is designed for use with Vicinity's VMC 1200 all-electric class 3 truck and can be used for up to 100% of eligible production costs on the vehicle, excluding labor and overhead from Vicinity's assembly plants.

The interest rate on this new facility will be prime plus 2% and will be secured by existing assets of the Company. In addition to the USD 30 million credit commitment for the VMC 1200 trucks, RBC will continue to provide Vicinity with CAD 10 million in an ABL for use with its existing bus orders and a USD 3 million letter of credit facility. The additional facility will be an amendment to the current asset-backed facility (“ABL”) currently in place with RBC.

The commitment is in the final stages of documentation and due diligence and expected to be in place by February of 2023.