GreenPower’s Star Sign

• $106.419M Market Capitalization

GreenPower Motor Company Inc. (GPV.V) announced today that it has acquired Lion Truck Body, a truck accessories store based in California. As the name suggests, Lion Truck Body designs and installs a variety of truck bodies for a wide range of industries, including transport, construction, landscaping, catering, utility, and service. According to the company’s latest fiscal year, it generated $3.5 million.

“This acquisition provides our EV Star truck customers with many options for any number of body types required to meet their business needs with greater speed to market – completed in a few weeks versus taking months,” commented Brendan Riley, President of GreenPower.

GreenPower’s acquisition of Lion Truck Body is expected to expand the potential for the Company’s Star truck customers. To provide some context, GreenPower’s portfolio of Star Electric Vehicles (EVs) includes vehicles, cabs, and chassis suitable for both passenger and cargo transportation. On January 4, 2022, the Company announced that four of its EV Star CCs were delivered to Transporation Commodities.

More recently, on March 1, 2022, GreenPower announced the signing of a multi-year supply agreement with Workhorse Group Inc. (WKHS.Q). Under the terms of this agreement, GreenPower has agreed to deliver 1,500 EV Star CCs to Workhorse, which is expected to commence sometime this month. GreenPower’s CCs will be used to produce Workhorse’s new Class 4 W750 step van line.

If the name Workhorse is ringing a bell, you may recall that the company was under investigation by federal authorities in 2021. Workhorse executives and board members supposedly sold $60 million worth of shares before the company’s stock plummeted. After these details were published, Workhorse announced the departure of two senior executives. Anyways, that’s the gist of it. 

Production of Workhorse’s W750 vehicles is expected to begin in Q3 2022. With this in mind, there appears to be a clear demand for GreenPower’s products. The proof is in the pudding. For the year ended March 31, 2022, the Company generated revenue of $17,236,773 compared to $13,286,184 in the previous year, representing a growth of 29.7%.

GreenPower attributes its revenue for the year ended March 31, 2022, to the sale of 18 BEAST school busses, 11 EV Stars, 4 EV Star +, and 21 EV Star CCs. Additionally, the Company provided 1 EV Star and 10 EV Star CCs via lease financing as well as 28 EV Stars that were previously on lease. However, the lease of these vehicles was canceled and the EV Stars were subsequently sold.

So what does Lion Truck Body bring to the table? Lion Truck Body is an attractive acquisition for GreenPower primarily due to the company’s offering of truck bodies. This includes dry-freight aluminum, refrigerated box, aluminum beds, stake beds, flatbeds, and service bodies.

As for the details of GreenPower’s acquisition of Lion Truck Body, the two companies entered into an asset purchase agreement. According to the terms of the agreement, GreenPower has purchased the assets of Lion Truck Body through its wholly-owned subsidiary. The purchase was comprised of an upfront cash payment totaling $215,000.

The purchase also included the assumption of certain liabilities, which totaled an estimated $1,450,000, and remaining cash payments of up to $25,000. If you would like to know more about Lion Truck Body, check out the company’s Instagram here. Additionally, if you would like to see GreenPower’s Q4 and FY 2022 financial results, check out the Company’s press release here.

GreenPower’s share price opened at $4.28 today, down from a previous close of $4.34. The Company’s shares were down -0.69% and were trading at $4.31 as of 10:36 AM EDT.