Power Sustainable acquires Lion Electric
by CM staff
Following the offering Power Sustainable beneficially owns and exercises control over 89,257,099 shares, which represents approximately 39.2 per cent of the issued and outstanding shares.
MONTREAL — Power Sustainable Capital Inc. announced the acquisition, through its wholly owned subsidiary Power Energy Corporation (PEC), of 9,842,519 units of The Lion Electric Company.
Each unit consists of one common share in the capital of Lion and one common share purchase warrant. Each whole warrant will entitle its holder to acquire one share at an exercise price of US$2.80 per share for a period of five years following the closing of the offering.
Pursuant to the terms of the offering, PEC acquired 9,842,519 units at a price of US$2.54 per unit (or approximately C$3.47 based on the Bank of Canada’s daily exchange rate on December 12, 2022) for aggregate consideration of US$24,999,998.26 or C$34,144,997.62.
Before the offering, Power Sustainable held 67,301,166 shares, which represented approximately 33.9 per cent of the issued and outstanding shares on a non-diluted basis.
Following the offering Power Sustainable beneficially owns and exercises control over 89,257,099 shares, which represents approximately 39.2 per cent of the issued and outstanding shares.
Power Sustainable, through PEC, holds the shares and the warrants for investment purposes and, pursuant to nomination rights granted to PEC by Lion, has designated certain nominees to serve on Lion’s board of directors.
Power Sustainable may increase or decrease its investment in Lion through a prospectus offering, on the open market, in private transactions, pursuant to registration rights that have been granted to PEC by Lion, or otherwise, on such terms and at such times as Power Sustainable may deem advisable depending on market conditions and other relevant factors, including expiry of a 90-day lock-up period agreed to with the underwriters for the offering.
