VANCOUVER, Sept. 12, 2016 /CNW/ - Grande West
Transportation Group Inc. (TSXV: BUS; OTC: GWTNF) – ("Grande
West" or the "Company"), a manufacturer of heavy-duty mid-sized
transit buses for sale in Canada
and the United States, is pleased
to provide a Corporate update for the Company's fiscal year fourth
quarter ended August 31, 2016.
Audited fourth quarter and year-end financials will be released
in December 2016 and will correspond
with an annual corporate update. To further increase financial
transparency, the Company will be changing its fiscal year to
coincide with the calendar year starting January 1, 2017. This reporting change will
result in additional audited fourth quarter financial statements
ending December 31, 2016.
Grande West recently announced that the common shares of the
Company have been made eligible for book-entry delivery and
depository services of The Depository Trusty Company (the "DTC") to
facilitate electronic settlement of transfers in the United States. DTC is the largest
securities depository in the world and holds over thirty-five trillion dollars worth of securities
on deposit. DTC accepts deposits of securities from its
participants only, who are usually clearing firms. DTC eligibility
increases liquidity and efficiencies in trading Grande West's
shares, which will allow the Company to increase exposure to new
investors in the US and internationally.
Deliveries, Order Activity and Backlog
The Company delivered and is in the final process of delivering
twenty-one (21) 30-foot Vicinity buses. This is a quarterly record
number of buses booked to date.
Buses have been or are currently being delivered to the
following customers:
- Ten (10) to the City of Calgary,
Alberta;
- Two (2) to the City of Canmore,
Alberta;
- One (1) to the City of Moose Jaw,
Saskatchewan;
- Three (3) to the City of Oakville,
Ontario;
- Two (2) to Transdev Quebec;
- Three (3) to the Alliance Bus Group, USA
Revenue for these 21 bus deliveries is over $7,000,000 CAD.
Current firm orders for 2017 delivery are for one hundred
thirty-two (132) buses, valued at over $45
million CAD. The Company's bid activity is at an all-time
high and further orders are expected during calendar year 2016.
Bid activity for 2018 delivery is expected to be considerably
higher than for 2017 with Federal Stimulus funding increasing bus
sales all across Canada.
Grande West continues to win multi year contacts with options.
2018 options are currently at fifty (50) Vicinity buses and
further orders are expected as the 2017 production schedule fills
up.
2019 delivery Options are now at 40 units.
Recent Orders include the City of
Edmonton awarding Grande West a long term supply contract
for mid-size 30 foot Vicinity buses (see news release
September 8, 2016). The contract has
forecasted quantities (firm and options) for up to forty-five (45)
buses, allows the City to increase the number of buses as required
and extend the contract for up to 5 years. The initial 2017
delivery order is for six (6) Vicinity buses valued at
approximately $2.33 million CAD. The
5-year contract value, if fully exercised, is estimated at
approximately $18 million CAD.
The three (3) 30 foot Vicinity Buses delivered to the Alliance
Bus Group are the first USA
deliveries in the fifty (50) bus order announced on October 27, 2015. The balance of the order has
been realigned into the production schedule for 2017 delivery.
As previously announced, Grande West is expanding its production
schedule to manufacture a minimum of 15 buses per month throughout
2017. This new dedicated manufacturing line will equate to cost
savings in numerous areas as operations are optimized for
efficiencies in production, purchasing, shipping and delivery.
USA Activity
In the last quarter Grande West announced the completion of
testing the Vicinity 30 foot model bus in the FTA's Bus Test
Program at Altoona, Pennsylvania.
The Vicinity was tested for the maximum allowable 12-year
durability testing, where it delivered exceptional results in all
categories. The full report is available
at www.grandewest.com. The primary focus of the test program
evaluates the structural durability and integrity, reliability,
performance, maintainability, safety, noise, and fuel economy.
The validation of achieving such high results at Altoona will be the catalyst for many
USA orders. The Alliance Bus Group
is marketing the Vicinity across the country, resulting in very
positive results with its efforts.
The USA market is split into
two segments, private sales and transit sales. Transit sales
require a Buy America certification. Grande West is pleased to
announce it is currently preparing to meet the FTA requirements for
Buy America. When completed the certification will open
opportunities to bid on USA
transit bus sales. Grande West's total addressable
market after Buy America certification in the US is estimated with
target sales of about 1,000 buses per year.
In order to accelerate its efforts to obtain Buy America
certification and support increased sales and delivery activity,
the Company is pleased to announce the addition of John Choo to the Grande West engineering
department. John will lead the Company's Buy America initiative and
work with the sales and production team on RFPs, production and
deliveries. John is a Professional Engineer with over 25 years
experience in project management, support, testing, mechanical
design engineering, sales, and other related skills. He spent the
majority of his career with Motor Coach Industries and New Flyer
Industries Inc. His most recent position with New Flyer Industries
was as an Engineering Technical Leader, which translates very well
to his new position with the Company.
John will be granted 100,000 stock options at $0.50 per common share, which will vest in
accordance with the Company's stock option plan. The options
granted are exercisable until September 6,
2021, subject to exchange approval.
William Trainer, President and
CEO of Grande West stated, "It has been a very busy quarter
achieving record deliveries of our Vicinity buses, and this will
translate into record quarterly revenue. This has also been an
important time for us to analyze and streamline the Company's
production and delivery processes. Our team has done a tremendous
job building up our Canadian market business, and we expect to
continue to win market share across the country. With our order
book and backlog filling up for 2017 deliveries, Grande West has
never been in a better position operationally or financially than
we are today. The Company wishes to thank our Canadian investors,
partners, public sector transit clients and ridership for their
support to date as we ramp up to sustained production, revenues and
profitability in the first quarter of 2017."
An updated investor presentation will be available on the
company's website on September 14,
2016.
About Grande West Transportation Group
Grande West Transportation Group is a Canadian bus manufacturer
which designs, engineers and manufactures mid-size buses for
transit authorities and commercial enterprises. Grande West's
Vicinity bus is available in 30 and 35 foot models designed with
affordability, accessibility and global responsibility in mind. It
costs significantly less than a regular 40 foot transit bus, burns
less fuel and emits less harmful emissions.
The Company has been successful in supplying Canadian municipal
transportation agencies and private operators with new buses and is
receiving follow-on orders in most Provinces across the country.
Grande West is also receiving orders in the much larger US market
from private operators, while working towards a 'Buy America'
certification in order to sell to federal and state transit
authorities.
Grande West
Transportation
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Paradox Public
Relations
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John
LaGourgue
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Carl
Desjardins
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Ph:
1-604-607-4000
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Ph:
1-866-460-0408
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jlagourgue@grandewest.com
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carldesjardins@paradox-pr.ca
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www.grandewest.com
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www.paradox-pr.ca
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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
Canadian securities legislation. All statements, other than
statements of historical fact, included herein, including without
limitation, statements regarding the use of proceeds from the
Private Placement, 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 Grande West's expectations include uncertainties
relating to the receipt of final approval from the TSX-V; and other
risk and uncertainties disclosed in Grande West's reports and
documents filed with applicable securities regulatory authorities
from time to time. Grande West's forward-looking statements reflect
the beliefs, opinions and projections on the date the statements
are made. Grande West 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 Grande West Transportation Group Inc.