New Credit Facility Complements the Previously Announced Facility and Provides Additional Financial Resources for Working Capital and Expenditures Related to the Commencement of Production at the Ferndale, Washington Facility

VANCOUVER, BC / ACCESSWIRE / May 3, 2023 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced that it has secured a new US$9.0 million credit facility from Export Development Canada ("EDC") (the "New Credit Facility") to fund working capital and capital expenditures as the Company begins production of the VMC 1200 at its facility in Ferndale, Washington.

"We are pleased to finalize this highly complementary New Credit Facility, which provides us with greater financial flexibility to invest in Vicinity's next phase of growth," commented William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "EDC is a tremendous partner, structuring this New Credit Facility to both complement and supplement our existing US$30 million RBC Facility. With this New Credit Facility, we can fund a greater variety of production-related expenses.

"I would like to thank the team at EDC for their vote of confidence in our ability to execute our plan to ramp the Ferndale facility to profitability. The entire team at Vicinity is looking forward to continuing operational execution in the months ahead with a view to revolutionizing the Class 3 work truck market and creating sustainable, long-term value for all our stakeholders," concluded Trainer.

The New Credit Facility, which is designed for capital expenditures and working capital needs, bears interest at a rate of prime plus a per annum margin between 375 and 500 basis points depending on the Company's full year EBITDA, and is secured by the existing assets of the Company. This New Credit Facility complements the previously announced US$30 million credit facility, which is required to be used for VMC 1200 production costs, excluding labor and overhead.

About Vicinity Motor Corp.

Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("VMC") is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.

About EDC

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians.

Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com

Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, related government-imposed restrictions on operations, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE: Vicinity Motor Corp.