GreenPower Motor Company announced that it has regained compliance with Nasdaq’s Equity Rule, averting an imminent delisting threat. The company achieved the required equity base through a combination of new capital and debt restructuring, including an equity offering of up to $18 million in Series A Convertible Preferred Shares, a $5 million term loan, and a new line of credit with CIBC.
The financing package also involved converting $7 million of related‑party loans into secured convertible debentures and $3 million of related‑party loans into Series B Convertible Preferred Shares. These transactions increased shareholders’ equity to meet Nasdaq’s minimum requirement, which for the Capital Market is a stockholders’ equity balance of at least $5 million. At the end of September 2025, GreenPower’s balance sheet showed a stockholders’ deficit of $8,334,190, so the capital raise and loan conversions were essential to bring the company back into compliance.
Despite the compliance win, GreenPower remains in a challenging financial position. The company’s cash flow is negative and it carries an accumulated deficit, with a debt burden of $21.96 million—77 % of total capital—as of February 2026. The firm is also investing in a new manufacturing facility in Santa Teresa, New Mexico, supported by state incentives, which will require additional capital and further strengthen its long‑term growth prospects.
Management emphasized the significance of the transaction package. CEO Fraser Atkinson said, "These transactions have helped the Company regain full compliance with the Nasdaq listing criteria as well as with the execution of our strategic goals." He added, "GreenPower has successfully converted $7 million of loans into secured convertible debentures and $3 million of loans into Series B Convertible Preferred Shares, further strengthening our capital structure and reinforcing our commitment to sustainable transportation solutions." President Brendan Riley noted the progress in deploying electric school buses in New Mexico, highlighting the pilot project’s challenges and focus.
The company will remain under a one‑year panel monitor, a Nasdaq requirement that reviews compliance status and can trigger delisting if the company falls out of compliance again. The Nasdaq determination letter issued on August 15 2025 had identified the company’s non‑compliance with the Equity Rule, placing it at risk of delisting on September 5 2025 if it did not appeal. By restoring compliance, GreenPower preserves its Nasdaq Capital Market listing, which is critical for liquidity and investor confidence while it continues to address its broader financial challenges.
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