Lion Electric, a manufacturer of electric utility vehicles in North America, has successfully raised $142 million in funding to support its ambitious expansion plans across Canada and the United States.
The financing endeavors encompass a range of transactions, including the issuance of $74 million in senior unsecured convertible debentures to a group of investors. Notable subscribers in this group include Investissement Québec, Fonds de solidarité des travailleurs du Québec, and Fondaction. Additionally, Lion Electric has issued $90 million Canadian dollars (equivalent to $68 million US dollars) in senior secured non-convertible debentures to prominent subscribers like Mach Group and the Mirella & Lino Saputo Foundation. As part of these agreements, Lion Electric has also issued 22.5 million common share purchase warrants, with an exercise price set at 2.81 CAD ($2.13 USD).
One of Lion Electric’s recent highlights is the unveiling of its latest innovation, the Lion5. This groundbreaking all-electric Class 5 truck is equipped with Lion’s cutting-edge 800V battery packs, engineered and manufactured in-house. Boasting an impressive maximum payload capacity of up to 12,500 pounds, the Lion5 is set to commence production before the close of this year.
In March, Lion Electric made waves when it took Nikola Motor to court. The legal dispute arose after Nikola Motor acquired Romeo Power and subsequently terminated a battery supply agreement between Romeo Power and Lion Electric. Speculation suggests that Nikola Motor sought to safeguard its own battery supply, leading to the contentious legal battle.
With its recent financing success and the forthcoming production of the Lion5, Lion Electric solidifies its position as a leading player in the electric vehicle industry, poised to reshape the landscape of sustainable transportation across North America.