CALGARY,
AB, Dec. 20, 2023 /CNW/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the
"Company" or "Exro"), a leading clean-technology
company that develops new generation power-control electronics that
expand the capabilities of electric motors and batteries, today
provided an operational update in a 2023 year-end letter to
shareholders.
Dear Exro Shareholders,
As we reach the end of Q4 2023, in keeping with our commitment
to open communication with shareholders, we would like to provide a
succinct year-end operational update. In this letter, we address
Cell Driver™ progress towards UL testing completion by year's end,
positive developments with named and Non-Disclosure Agreement
("NDA") partners engaged in Coil Driver™ agreements, and details
pertaining to upcoming interest payments pursuant to the terms of
our convertible debenture.
- Cell Driver™ UL Certification Progress
Exro has been diligently working towards UL certification and
remains on track to complete testing by December 31st, 2023. Since our last
update we have successfully passed a series of tests and this week
have begun the final test requirement at Intertek Laboratories. As
we approach the UL standards milestone, we are pleased to report
that we have received verbal confirmation from several parties on
pending purchase orders, marking a promising path towards
commercialization. These pending purchase orders will span
installations throughout North
America, reflecting a strong market demand, with verbal
commitments for more than 30 units to be delivered in 2024.
Shareholders can expect a comprehensive update early in the new
year that speak to both the completion of UL standards and purchase
orders specifics.
- SEA-Electric First Track Testing Successfully
Completed
Exro has successfully completed first track
testing validation requirements for its Coil Driver™ system in its
project with propulsion technology partner SEA-Electric. Beyond
validating Coil Driver™, these tests underscore our system's
exceptional capabilities in increasing performance, marking
significant strides for medium-duty commercial vehicle
electrification. Notably, we validated gains in efficiency and
improved gradeability, with a 20% grade climbed 33% more quickly.
These efficiency and performance breakthroughs strengthen our
partnership with SEA-Electric and build potential amongst our
current respective OEM customers, while positioning Exro as a
leader in the sustainable commercial transport sector.
- NDA Partners Update
As stated in the past, we
understand that with NDA partners comes the challenge that our
shareholders are eager to learn names. Previously, we indicated
that we were targeting to lift at least one of the NDAs by end of
year. While we worked hard to take our partners out of NDA, we were
not able to achieve this milestone by year-end. That said, this
does not reflect great achievements with our NDA partners, and we
would like to provide two positive NDA partner updates, both which
include promising near-term timeframes for lifting the NDA.
With respect to the innovation project with our leading global
automotive OEM partner, we are very pleased to report that Exro was
notified today that the project has been approved to progress to
the next phase. This marks a significant stage gate and milestone
for Exro. Together with our NDA partner, we have completed a
rigorous simulation phase to design a Heavy Rare Earth/Rare Earth
(HRE/RE) free optimized motor and Coil Driver inverter system. The
optimized design demonstrated the ability to meet the stringent
performance and efficiency targets for passenger vehicles with this
type of machine while meeting challenging mechanical and system
criteria. We will now ramp up preparations for the second phase of
the project which will consist of the passenger vehicle prototype
development for delivery and testing together with our OEM partner
in 2024.
Following the customer audit on-site at Exro's Calgary facilities in November, the Exro team
completed successful bench testing with our off-highway NDA partner
in Europe on site this month in
Europe, marking an important
milestone for our relationship. With that, we now enter commercial
discussions for units and systems with negotiations that involve
the lifting of our NDA in early 2024.
Our major European motor partner has also completed testing this
month in Mesa, Arizona. We now
progress into the next stage of high-torque testing at a
third-party facility. This rigorous process akin to OEM-level
testing is a testament to our commitment to quality. We are
optimistic that upon completion of this testing negotiations will
include the lifting of our NDA.
- Upcoming Interest Payment
Pursuant to the terms of
the C$15,000,000 secured convertible
debentures of the Company issued on December
30, 2022 (the "Debentures"), bearing interest at 12% per
annum, payable semi-annually in arrears beginning on June 30, 2023 (the "Due Date"). As at
December 20, 2023 the Company has
14,950 debenture units outstanding, and an aggregate amount of
interest owing on the Debentures payable of C$897,000 (the "Interest"). The Company has
elected to issue 679,544 common shares in the capital of the
Company ("Common Shares") at a deemed price of C$1.32 to the debenture holders as payment for
the interest. Pursuant to the Debentures, the deemed issue price
per Common Share is calculated based on the volume weighted average
trading price of the Common Shares for the five trading days
immediately prior to December 20,
2023. The remaining balance of the Interest will be paid in
cash.
The issuance of the Common Shares as payment for interest owing on
the Debentures is subject to the terms and conditions of the
Debentures as well as the receipt of all requisite approvals,
including, without limitation, the approval of the Toronto Stock
Exchange.
- Detailed 2023 Recap and 2024 Roadmap
As tradition dictates, in early Q1 2024, Exro shareholders can
anticipate a comprehensive letter that revisits the Company's
performance in 2023 and details the 2024 roadmap. This note will
take into consideration this past year's significant progress and
the 2024 key milestones Exro has defined on its path to
profitability. This commitment to transparency with shareholders
remains at the forefront of Exro's dedication to keeping its
investors informed.
Sincerely,
Sue Ozdemir (Chief Executive
Officer) & Darrell Bishop (Chief
Investment Officer)
ABOUT EXRO TECHNOLOGIES
INC.
Exro Technologies Inc. is a leading clean technology company
that has developed new generation power control electronics that
change how the world optimizes energy by expanding the capabilities
of electric motors and batteries. The company's innovative
technologies serve to bridge the performance-cost gap in e-mobility
(Coil Driver™) and stationary energy storage (Cell
Driver™), and act to accelerate adoption towards a
circular electrified economy by delivering more with less – minimum
energy for maximum results.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors
Visit us on social media @exrotech.
CAUTIONARY STATEMENT REGARDING
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified using terminology such as "plans", "expects",
"estimates", "intends", "anticipates", "believes" or variations of
such words, or statements that certain actions, events or results
"may", "could", "would", "might", "will be taken", "occur" or "be
achieved". Forward looking statements involve risks, uncertainties
and other factors disclosed under the heading "Risk Factors" and
elsewhere in the Company's filings with Canadian securities
regulators, that could cause actual results, performance,
prospects, and opportunities to differ materially from those
expressed or implied by such forward-looking statements. Although
the Company believes that the assumptions and factors used in
preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2022, and financial
statements and related MD&A for the financial year ended
December 31, 2022, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company has attempted
to identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended. The
Company does not intend, and does not assume any obligation, to
update this forward-looking information except as otherwise
required by applicable law.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this press
release.
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SOURCE Exro Technologies Inc.