Aldergrove-based electric bus and truck manufacturer Vicinity is reporting $150 million in back orders and increased revenue in its latest fiscal report.
It has also reported Vicinity Motor Corp. stock prices have fallen below the minimum $1 closing bid price required by the National Association of Securities Dealers Automated Quotations (NASDAQ) stock exchange, the most active stock trading venue in the U.S. by volume.
Third quarter 2023 financial results released by Vicinity on Monday, Nov 13, said its order backlog as of Sep. 30 “exceeded $150 million, the vast majority of which are for electric vehicles.”
In the third quarter of the year, the company delivered 26 electric trucks and six transit buses, and has new orders for eight non-electric buses, the report disclosed.
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Vicinity founder William Trainer noted the company’s new U.S. manufacturing facility in Ferndale, Wash. began production during the same quarter.
“With improving margins, a growing sales funnel, and strong backlog, we are positioning Vicinity for future success,” Trainer said.
“We continue to see strong macro-economic tailwinds, with commercial EV adoption continuing to accelerate, supported by generous incentives throughout Canada.”
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Vicinity’s gross profit in the third quarter of 2023 totaled $0.5 million (U.S.), or eight per cent of revenue, compared to a gross loss of $0.2 million in the third quarter of 2022.
Net loss was down in the third quarter at $4.4 million, compared to $7.4 million for the same period the previous year.
Vicinity said in October, it was notified by NASDAQ that, “due to its [Vicinity’s] closing bid price being below $1 per share for 30 consecutive days, it is not in compliance with the minimum bid price requirement.”
Vicinity has until April 22, 2024 to get the closing price above $1 for a minimum of 10 consecutive business days.
A company statement said Vicinity ”intends to take all reasonable measures available to regain compliance… and to maintain the listing of its common stock.”
If it fails to make the minimum, Vicinity risks being delisted by NASDAQ, which would impair its ability to raise funds from investors.
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First established in 2008 as Grande West, the manufacturer was formed to fill a request for smaller and mid-size bus orders that BC Transit was interested in pursuing.
It has since been renamed after its Vicinity model, a popular low-floor, mid-sized transit bus available in lengths of 27.5, 30, and 35 feet.
In 2020, John LaGourgue, vice president of corporate development, estimated there were roughly 500 Vicinity buses on Canadian and American roads.