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  5. GPV: Please comment on GPV latest results and also why was there such a lengthy cease trade order? [GreenPower Motor Company Inc.]
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Q: Please comment on GPV latest results and also why was there such a lengthy cease trade order?
Thanks
Rob
Asked by Robert on July 25, 2023
5i Research Answer:

Q4 sales rose 225% to $15.3M, ahead of estimates of $13.5M. 123 vehicles were delivered in the quarter, up from 19 last year. Inventory was $41M, including $31.9M in finished vehicles. Loss of 22c per share did miss estimates of 17c. Gross profit was $2.3M vs $2.9M expected. The auditor did put in a 'going concern' note for the quarter. The cease trade order was simply a 'failure to file' order as the company was late in filing its numbers. Now they have been released the order has been revoked. GPV signed a term sheet for a loan of up to $15M, which alleviates a lot of short term solvency concerns. Cash flow continues to be highly negative. The numbers look OK. Certainly on the production/demand side things are good. The stock has surged, as investors become more comfortable with its survivability, despite the auditor's concerns. Still, with high debt increasing, auditor's concerns, and negative cash flow, and a possible recession, this still has to be in the extreme risk category.