Canada’s Lion Electric looks to raise $50M from stock offering

Canadian electric car maker Lion Electric plans $50 million Stock offer Strengthen the balance sheet and expand the factory.

The Montreal company said the expansion will focus on plants in Joliet, Illinois and Mirabel, Quebec.Lion Electric makes electric buses and medium-duty urban freight trucks.

Lion Electric said in stock exchange filings that it would make approximately $47 million in net profit from the offering, after U.S. and Canadian underwriters B. Riley Securities and National Bank Financial received $3.25 million in fees. said he expected. The underwriters have issued 19.7 million shares at $2.54 per share.

If the offerings on the New York Stock Exchange and the Toronto Stock Exchange sell out, the companies will have the option to purchase an additional 2.9 million shares at $2.54. Lion Electric Co., Ltd. It was trading at just over $2 at noon on the NYSE on Wednesday.

Lion Electric’s largest investor is Canadian financial services conglomerate Power Corporation, which owns approximately 35% of the company’s shares. The second largest shareholder is company founder and CEO Marc Bedard, who owns 14% of the EV maker’s stake.

Lion Electric opened a $185 million battery manufacturing plant in Mirabel a year ago. The governments of Quebec and Canada invested his $100 million in building the plant.

In May 2021, Lion Electric selected Joliet over sites in Michigan and Texas to build a facility that will manufacture up to 20,000 electric buses and trucks annually.

The company said it will spend $70 million over three years and bring more than 800 jobs to Illinois. In return, he will receive $7.9 million in Illinois tax credits if that goal is met.

Lion Electric said in November that its Joliet plant had a backlog of 2,408 vehicles, worth $575 million, that had yet to be delivered. In the same month, Canada’s second largest pension fund, Caisse de Depot et Placement du Québec, and Montreal’s Finalta Capital also provided a $22.5 million line of credit to Lion Electric.

Founded in 2011, Lion Electric has raised $222.4 million in four funding rounds since its initial public offering at $10 per share in May 2021.

Lion Electric’s customers include Amazon, IKEA, and New Jersey school bus service contractors Student Transportation of America and First Student. The latter is owned by his EQT Partners in Sweden, a real estate and infrastructure investment fund.

Data compiled by PitchBook shows Lion Electric’s market capitalization at $539.78 million, down 74% from a year ago.

In the third quarter of 2022, Lion Electric lost $17.2 million. This is due to his $29 million capital investment in manufacturing facilities, including his $17 million spent on the Joliet plant.

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