#Canada #Lion Electric #Mirabel #C$50 million

Lion Electric Reaches Agreement for Sale of Innovation Center

In a significant developmental stride, The Lion Electric Company, a prominent player in the all-electric medium and heavy-duty vehicle manufacturing scene, has announced that it has successfully reached a definitive agreement with Aéroport de Montreal. The transaction involves the sale of its innovation center facility located in Mirabel, Québec, for a purchase price of C$50 million. This agreement highlights Lion's strategic move towards financial stability, as the net proceeds from the sale will be directed towards the partial repayment of the company’s senior secured non-convertible debentures issued in July 2023.

Financial Implications of the Sale

The decision to sell the innovation center stems from a strategic reassessment of Lion Electric's long-term financial health. The company expects this transaction will significantly reduce its long-term debt. Notably, the holders of the debentures will benefit from a first-ranking hypothec on the real rights related to the innovation center facility, ensuring a secured repayment structure.

While this move is expected to streamline the company’s financial obligations, it will not adversely affect its short-term liquidity or cash position. The closing of this transaction is anticipated to take place before the end of 2024, pending the fulfillment of customary closing conditions, which emphasizes Lion Electric's commitment to maintaining operational integrity during the transition phase.

About Lion Electric

Lion Electric is at the forefront of innovation in the zero-emission vehicle sector, specializing in all-electric school buses and various urban transport solutions. As a leader in North American electric transportation, Lion Electric designs, builds, and assembles numerous components of its vehicles, including chassis, battery packs, truck cabins, and bus bodies. The company's mission is to foster a transition to all-electric vehicles to enhance societal and environmental sustainability.

The innovative technologies employed in Lion Electric's vehicles cater specifically to the needs of users, reinforcing their commitment to producing reliable and efficient transport options that align with everyday needs. Lion Electric operates under the belief that shifting to all-electric vehicles will yield considerable benefits for society, the environment, and overall quality of life. The company’s shares are publicly traded on both the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol LEV.

Future Outlook

The sale of the innovation center marks a pivotal moment for Lion Electric as it continues to navigate through the evolving landscape of electric vehicle production and sales. This strategic decision not only aims to bolster the company’s financial standing by alleviating debt pressure but also facilitates the reallocation of resources towards upcoming innovations and enhancements in their product offerings.

As the market for electric vehicles continues to grow, Lion Electric's strategic maneuvers, such as this sale, position the company well to harness future opportunities within the sustainable transportation sector. Industry watchers will be keeping a close eye on the closing of this transaction and how it may influence Lion Electric's operational strategies moving forward.