Lion Electric, the Canadian electric commercial vehicle manufacturer, announced a new loan agreement with Investissement Québec worth up to 7.5 million Canadian dollars, underpinning its financial strategy amid recent developments.
The loan, initially set at 5 million CAD and extendable to 7.5 million CAD under specific conditions, falls under the ESSOR program and carries a fixed interest rate of 13%. Lion Electric also disclosed modifications to its senior credit instruments with several financial institutions, including the National Bank of Canada and the Caisse de dépôt et placement du Québec.
As part of these amendments, Lion Electric will no longer be bound by financial covenants such as the tangible net worth test and springing fixed charge coverage ratio, but must maintain a minimum liquidity of 15 million CAD.
In addition to financial updates, Lion Electric celebrated the final certification of its LionBattery HD heavy-duty battery pack, a critical component slated for use in its all-electric Class 8 Lion8 tractor. This follows the previous certification of its medium-duty variant in December.
Marc Bédard, CEO-Founder of Lion Electric, emphasized the significance of this milestone, stating, “This advancement underscores our dedication to excellence, reliability, and safety, solidifying our leadership role in North America’s transportation electrification landscape.”
With the battery development milestones achieved, Lion Electric now focuses on optimizing the integration of LionBattery MD and HD packs to enhance production efficiency across its vehicle lineup.
