Green Power(GP), Nasdaq conditions restored… counterattack with a $200 million U.S. manufacturing plant

GreenPower (GP) is simultaneously advancing fundraising, production base expansion, and performance improvement, accelerating the strengthening of “financial stability” and growth strategies. After requalifying for Nasdaq listing requirements on February 16, the company has received large-scale financial support and plans to establish a production base in the United States, significantly speeding up its entry into the commercial electric vehicle market.

At the 2026 regular shareholders’ meeting, GreenPower reorganized its board of directors and management team, and reapproved the 2022 equity incentive plan. Fraser Atkinson was appointed as Chairman and CEO, Brendan Riley as President, and Michael Sieffert as CFO. The external auditor has been changed to Davidson & Company LLP. The company stated that the former auditor did not issue any “non-unqualified opinions” in the last two accounting years.

Improvements in financial structure are also progressing rapidly. GreenPower has once again complied with Nasdaq listing rule 5550(b)(1) on February 16 through a series of capital transactions. The company raised up to $18 million (approximately 25.9 billion KRW) by issuing convertible preferred stock, obtained a $5 million (approximately 7.2 billion KRW) loan, and concurrently completed a related party debt restructuring. As a result, Nasdaq will continue a one-year monitoring period, but stock trading remains normal.

Performance is also showing an upward trend. In the third quarter of fiscal year 2026, sales reached $8.5 million (approximately 12.2 billion KRW), with a net profit of $4.2 million (approximately 6 billion KRW). The gross profit margin for vehicle sales remained at 28%, and selling and administrative expenses were reduced to $2.4 million, more than halved from the previous year. Working capital is also maintained above $5 million, reducing liquidity pressure.

In terms of fundraising, collaboration with financial institutions remains a key pillar. GreenPower received a total of $5 million (approximately 7.2 billion KRW) in credit support from CIBC (Canadian Imperial Bank of Commerce), including a $3 million revolving credit line and a $2 million three-year loan. Additionally, financing of $5 million (approximately 7.2 billion KRW) completed through a family office has been secured. Some directors provided personal guarantees, in exchange for which the company issued warrants and common stock.

The production expansion strategy has become more concrete. GreenPower plans to establish a North American production base and U.S. headquarters in Santa Teresa, New Mexico. The facility will cover approximately 125,000 square feet and is expected to generate about $200 million (approximately 288 billion KRW) in economic benefits over the next decade, creating over 340 jobs. The area has been designated as a “foreign trade zone,” which is considered advantageous for cross-border electric vehicle production and logistics. New Mexico has committed to providing incentives totaling $14.6 million (approximately 21 billion KRW).

Sales are expected to benefit from subsidy policies. With the HVIP program in California restarting, the EV Star series vehicles can receive up to $130,000 (approximately 1.87 billion KRW) in subsidies per vehicle. Similarly, New Jersey offers subsidy and financial support programs, with support amounts exceeding $90,000 per vehicle.

Experts evaluate GreenPower’s recent initiatives as a “typical growth phase of simultaneously advancing liquidity assurance and capacity expansion.” An electric vehicle industry analyst noted, “The synergy of subsidy policies, financial stabilization, and production base assurance significantly enhances its competitiveness in the small- and medium-sized commercial electric vehicle market.”

Comment: In the short term, there are concerns about equity dilution caused by financing, but considering Nasdaq’s requirements for recovery and performance improvement, whether “structural improvement” can translate into actual results will be a key factor influencing future stock price direction.