MONTREAL, Nov. 18,
2024 /PRNewswire/ - The Lion Electric Company (NYSE:
LEV) (TSX: LEV) ("Lion" or the "Company"), a leading manufacturer
of all-electric medium and heavy-duty urban vehicles, announced
today that it has entered into further amendments to certain of its
senior credit instruments, namely (i) its senior revolving
credit agreement entered into with a syndicate of lenders
represented by National Bank of Canada, as administrative agent and collateral
agent, and including Bank of Montreal and Federation des Caisses Desjardins
du Québec (the "Revolving Credit Agreement"), and (ii) its
loan agreement entered into with Finalta Capital Fund, L.P., as
lender and administrative agent, and Caisse de dépôt et placement
du Quebec (through one of its
subsidiaries), as lender (the "Finalta CDPQ Loan Agreement").
The amendments to the Revolving Credit Agreement provide for,
among other things, the extension of the period applicable to the
previously announced suspension of the financial covenants
thereunder from November 15, 2024, to
November 30, 2024 (the "covenant relief period") and the
removal of the minimum liquidity covenant under the Credit
Agreement during the covenant relief period. The amendments to the
Finalta CDPQ Loan Agreement provide for, among other things, the
removal of the minimum liquidity covenant thereunder and the
addition of restrictions on the Company's use of receivables to be
received by the Company during the period. The Company will also be
required under each of the Revolving Credit Agreement and the
Finalta CDPQ Loan Agreement during the covenant relief period to
comply in all respects with cash flow projections and a contingency
plan agreed to with the lenders.
In the event the Company cannot raise additional funds or
negotiate amendments, concessions or waivers with its lenders, the
Company expects that it will not be able to remain in compliance
under the terms of the Revolving Credit Agreement and Finalta CDPQ
Loan following expiry of the covenant relief period or repay the
amounts owed under the Finalta CDPQ Loan upon maturity on
November 30, 2024. Any breach under
the Company's debt instruments could result, either directly or as
a result of the application of cross default or cross acceleration
provisions, in the Company's lenders exercising their rights
thereunder, including to request immediate repayment of amounts
borrowed by the Company. As a result, the Company has been
actively engaged in discussions with certain of its lenders
regarding potential alternatives relating to a restructuring of its
obligations. The Company also continues to fully consider all
potential sources of financing and/or other alternatives, which
alternatives may include a sale of the business or certain of its
assets, strategic investments and/or any other similar
opportunities or alternatives.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer of
zero-emission vehicles. The Company creates, designs and
manufactures all-electric class 5 to class 8 commercial urban
trucks and all-electric school buses. Lion is a North American
leader in electric transportation and designs, builds and assembles
many of its vehicles' components, including chassis, battery packs,
truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion
vehicles have unique features that are specifically adapted to its
users and their everyday needs. Lion believes that transitioning to
all-electric vehicles will lead to major improvements in our
society, environment and overall quality of life. Lion shares are
traded on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol LEV.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws and within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"), including statements regarding the
amendments entered into by the Company, the Company's ability to
remain in compliance under its debt instruments, discussions
regarding potential alternatives relating to a restructuring of the
Company's obligations, the Company's evaluation of other
opportunities or alternatives, statements about Lion's beliefs and
expectations and other statements that are not statements of
historical facts. Forward-looking statements may be identified by
the use of words such as "believe," "may," "will," "continue,"
"anticipate," "intend," "expect," "should," "would," "could,"
"plan," "project," "potential," "seem," "seek," "future," "target"
or other similar expressions and any other statements that predict
or indicate future events or trends or that are not statements of
historical matters, although not all forward-looking statements may
contain such identifying words. The forward-looking statements
contained in this press release are based on a number of estimates
and assumptions that Lion believes are reasonable when made. Such
estimates and assumptions are made by Lion in light of the
experience of management and their perception of historical trends,
current conditions and expected future developments, as well as
other factors believed to be appropriate and reasonable in the
circumstances. However, there can be no assurance that such
estimates and assumptions will prove to be correct. By their
nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may
or may not occur in the future. For additional information on
estimates, assumptions, risks and uncertainties underlying certain
of the forward-looking statements made in this press release,
please consult section 23.0 entitled "Risk Factors" of the
Company's annual management's discussion and analysis of financial
condition and results of operations (MD&A) for the fiscal year
2023 and in other documents filed with the applicable Canadian
regulatory securities authorities and the Securities and Exchange
Commission, including the Company's interim MD&As. Many of
these risks are beyond Lion's management's ability to control or
predict. All forward-looking statements attributable to Lion or
persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements contained and risk factors
identified in the Company's annual MD&A for the fiscal year
2023 and in other documents filed with the applicable Canadian
regulatory securities authorities and the Securities and Exchange
Commission. Because of these risks, uncertainties and assumptions,
readers should not place undue reliance on these forward-looking
statements. Furthermore, forward-looking statements speak only as
of the date they are made. Except as required under applicable
securities laws, Lion undertakes no obligation, and expressly
disclaims any duty, to update, revise or review any forward-looking
information, whether as a result of new information, future events
or otherwise.
See section 2.0 of the Company's interim MD&A for the three
and nine months ended September 30,
2024 (the "Interim MD&A"), entitled "Basis of
Presentation," section 15.0 of the Company's Interim MD&A
entitled "Liquidity and Capital Resources," and note 2 of the
Company's unaudited condensed interim consolidated financial
statements for the three and nine months ended September 30, 2024 which indicate the existence
of material uncertainty that may cast significant doubt on the
Company's ability to continue as a going concern.
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SOURCE The Lion Electric Co.
