Exro’s definitive commercialization agreement with Linamar
by CM staff
Exro and Linamar Corporation sign definitive agreement to serially produce and commercialize the parties' integrated electric beam axle product for Class 3-6 vehicles.
CALGARY — Exro Technologies has signed a definitive commercialization agreement (DCA), with partner, and global tier-1 automotive supplier, Linamar Corporation.
Exro and Linamar Corporation sign definitive agreement to serially produce and commercialize the parties’ integrated electric beam axle product for Class 3-6 vehicles. The agreement is set for an initial five-year term and follows successful continued testing and validation by Linamar of the Exro Coil DriverTM product samples delivered in Q4 2022. The agreement contemplates the start of series production by Q4 2024 and includes annual commercial volume targets that build to 25,000 units per annum by 2027.
In accordance with the agreement, by Q4 2023 the parties intend to build a product demonstration vehicle to be utilized as a joint marketing asset for the medium duty commercial vehicle market.
The agreement follows successful testing and validation by Linamar of the Parties’ co-developed integrated electric axle (eAxle) utilizing Exro’s Coil DriverTM traction inverter and signals a commitment by the parties to commercialize the product for multi-year series production.
Concurrently, to meet the capital expenditure and working capital requirements associated with the DCA, Exro announces that the company has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., and Eight Capital on behalf of a syndicate of underwriters (collectively, the “underwriters”), pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 13,500,000 common shares in the capital of the company at a price of C$2.25 per common share for gross proceeds to the company of C$30,375,000.
