Smith Electric Vehicles US Corporation announced the issuance and sale of $39 million of Series B Convertible Preferred Stock and the conversion of Bridge Notes and the exercise of related Warrants into $19 million of Series B Convertible Preferred Stock.
As previously announced, the company acquired Smith Electric Vehicles UK effective 1 January 2011. The purchase consideration was largely deferred with the balance due as a series of monthly cash payments. Per the purchase agreement, $5 million of proceeds from this equity raise will be used as a prepayment of the monthly installments. This prepayment will result in a payment holiday of approximately seven months.
The remaining net proceeds will be used for general corporate purposes and working capital needs as Smith continues to ramp up its supply chain and manufacturing capabilities.
Smith produces the Newton, currently the only all-electric medium/heavy-truck offering on the GSA schedule. The truck delivers a top speed of 55 mph, offers end users battery ranges from 50 to 120 miles on a single charge and a payload of more than 16,000 pounds.
Smith began production of the Smith Newton at its Kansas City assembly plant in October 2009.