Exro Announces Interest Payment on Convertible Debentures

Rhea-AI Summary

Exro Technologies, a clean tech company specializing in motor-control and electric propulsion systems, announced details of interest payments on its outstanding convertible debentures issued on December 30, 2022. The C$15 million debentures bear a 12% annual interest, payable semi-annually, with the latest payment due on June 30, 2023. As of June 24, 2023, the company has 14,950 debenture units outstanding, amounting to C$897,000 in interest. Exro has opted to pay this interest by issuing 1,794,000 common shares at $0.50 per share, based on the volume-weighted average trading price for five days prior to June 24, 2024. The issuance of these shares is pending approval from the Toronto Stock Exchange and other requisite conditions.

Positive

• Exro Technologies is managing its interest payments efficiently by opting to issue common shares.
• The company maintains transparency by adhering to the terms and conditions of the debentures.
• Convertible debentures provide a flexible financing option with less immediate cash outflow.

Negative

• Issuing 1,794,000 common shares for interest payments may lead to shareholder dilution.
• A 12% annual interest rate on debentures is relatively high, indicating potentially costly debt financing.

CALGARY, AB, June 24, 2024 /PRNewswire/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean technology company that provides proprietary motor-control and complete electric propulsion system technology for e-mobility, today announced interest payment details in relation to the Company's outstanding convertible debentures (the "Debentures").

Pursuant to the terms of the Company's C$15,000,000 Debentures issued on December 30, 2022, the Debentures bear interest at 12% per annum, payable semi-annually in arrears beginning on June 30, 2023 (the "Due Date"). As of June 24, 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 1,794,000 common shares in the capital of the Company ("Common Shares") at a deemed price of $0.50 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 June 24, 2024.

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.

ABOUT EXRO TECHNOLOGIES INC.

Exro Technologies Inc., now expanded through the strategic acquisition of SEA Electric, is a leading clean technology company that has developed new generation power control electronics. Its innovative suite of solutions, including Coil Driver™ motor control, Cell Driver™ energy storage system, and SEA-Drive® propulsion system, expand the capabilities of electric motors and batteries and offer users a comprehensive e-propulsion solution with unmatched performance and efficiency. Exro is reshaping global energy consumption, accelerating 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, which 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.

FAQ

What are the details of Exro Technologies' convertible debentures interest payment?

Exro Technologies announced that it will pay C$897,000 in interest on its C$15 million convertible debentures by issuing 1,794,000 common shares at $0.50 per share.

When is the interest payment due for Exro Technologies' debentures?

The interest payment is due on June 30, 2023.

How many debenture units does Exro Technologies have outstanding?

As of June 24, 2023, Exro Technologies has 14,950 debenture units outstanding.

How will Exro Technologies pay the interest on its debentures?

Exro Technologies will issue 1,794,000 common shares at $0.50 per share to pay the C$897,000 in interest.

What approvals are required for Exro Technologies to issue shares for interest payment?

The issuance of shares requires approval from the Toronto Stock Exchange and other requisite conditions.

What is the interest rate on Exro Technologies' convertible debentures?

The interest rate is 12% per annum, payable semi-annually.