- Discussing ambitious BEV-transition plans of small Canadian bus manufacturer Vicinity Motor.
- Based on an order backlog "in excess of C$100 million" management expects 2022 revenues to increase by 170% to C$140 million with adjusted EBITDA of C$10 million.
- Most recent capital raise has caused shares to tumble to new 52-week lows. The company will likely require additional capital to deliver on its stated order backlog.
- Outlining a number of red flags, including the company's engagement in paid stock promotion in Germany.
- Based on management's projections for this year, Vicinity Motor looks inexpensive, but investors should abstain from chasing the shares given the likely requirement to raise additional capital and elevated execution risk.
For further details see:
Vicinity Motor - Avoid Due To Additional Capital Needs And Elevated Execution Risk