Grande West Transportation Group Inc., a Canadian manufacturer of mid-sized multi-purpose transit vehicles for sale in Canada and the United States, announced that it has renewed its $20,000,000 credit facility.

The Royal Bank of Canada (RY) is providing a three-year revolving Credit Facility, based on the value of the Company's assets, for up to $20,000,000, to be used for ongoing working capital requirements. Loans under the Credit Facility bear interest at a rate equal to a Canadian prime rate or bankers' acceptance rate for loans denominated in Canadian dollars and, LIBOR or a U.S. prime rate for loans denominated in U.S. dollars, plus an applicable margin to those rates.

There are certain financial covenants under the Credit Facility that must be maintained. Specifically, the Company must maintain a fixed charge coverage ratio greater than 1.1 to 1 if the Company borrows over 75% of the available facility.

Dan Buckle, Grande West CFO stated, "We are fortunate and excited to continue to work with Royal Bank as the Company enters a new phase of production and expansion, specifically with our new Vicinity EV with an electric propulsion drive system. The credit facility significantly reduces pressure on our ongoing working capital requirements and allows us to continue our strong growth profile with cost-effective and flexible financial terms. Royal Bank has been great to work with and has provided the right facility that will grow with our business to best ensure Grande West's success."

The Company also announces that certain Eligible Directors have requested that their respective director's remuneration for the calendar year 2020 be paid in Deferred Share Units (DSUs) and accordingly, The Company has granted 28,580 DSUs in connection with directors remuneration for Q3.

In order to accommodate the grant of DSUs for calendar 2020, the Company must increase the number of common shares available under its DSU Plan from 200,000 common shares to 500,000 common shares. The grant of DSUs referred to above are subject to TSX Venture Exchange and shareholder approval to the increase of the DSU Plan.