Lion Electric enters into subscription agreements for approximately US$142M
by CM staff
The company intends to use the net proceeds from the financing to fund working capital, strengthen its financial position, and pursue its growth strategy.
MONTREAL — The Lion Electric Company, a manufacturer of all-electric medium and heavy-duty urban vehicles, has entered into subscription agreements with investors contemplating concurrent financing transactions for aggregate gross proceeds to the company of approximately US$142 million.
The company intends to use the net proceeds from the financing to fund working capital, strengthen its financial position, and allow it to continue to pursue its growth strategy, including the company’s capacity expansion projects in Mirabel, Quebec and Joliet, Illinois. The Financing is expected to close on or about July 19, 2023 or such other date as determined by the company and the subscribers, subject in each case to the approval of the Toronto Stock Exchange and the New York Stock Exchange and other customary closing conditions.
Concurrent with closing of the financing, the company will amend its senior credit facilities to, among other things, permit the incurrence of the Financing and extend the maturity of its senior credit facilities by one year to August 11, 2025.
In connection with the closing of the financing, the company will terminate its at-the-market equity program which was set to expire in July 2024 and no longer make any sales thereunder.
“This financing transaction represents a key milestone for Lion, as it provides us with flexibility to execute our growth plans. We are extremely thankful to the Province of Quebec and Investissement Quebec for their continued support of Lion, and to the new investors joining this round, including Fonds FTQ, Fondaction and a group of private investors led by Mach Group and the Mirella & Lino Saputo Foundation”, said Marc Bedard, CEO-Founder of Lion. “The diversity of this investor group, which stems both from the government and private sectors, speaks to the importance of Lion in the EV landscape”.
