LION ELECTRIC REACHES DEFINITIVE AGREEMENT IN RESPECT OF THE SALE OF INNOVATION CENTER LOCATED IN MIRABEL, QUÉBEC
Lion Electric (NYSE: LEV) has entered into a definitive agreement to sell its innovation center facility in Mirabel, Québec, to Aéroport de Montreal for C$50 million. The net proceeds from the sale will be used to partially repay the company's senior secured non-convertible debentures issued in July 2023. The transaction, expected to close by end of 2024, will reduce Lion's long-term debt but won't affect its short-term liquidity and cash position. The debenture holders currently hold a first-ranking hypothec over the innovation center facility's immovable/real rights.
Lion Electric (NYSE: LEV) ha raggiunto un accordo definitivo per vendere il suo centro innovazione a Mirabel, Québec, ad Aéroport de Montreal per 50 milioni di dollari canadesi. I proventi netti della vendita saranno utilizzati per rimborsare parzialmente le obbligazioni senior garantite e non convertibili emesse nel luglio 2023. La transazione, prevista per chiudersi entro la fine del 2024, ridurrà il debito a lungo termine di Lion, senza influire sulla sua liquidità a breve termine e sulla posizione di cassa. Gli obbligazionisti attualmente detengono un'ipoteca di primo grado sui diritti immobiliari del centro innovazione.
Lion Electric (NYSE: LEV) ha entrado en un acuerdo definitivo para vender su centro de innovación en Mirabel, Québec, al Aeropuerto de Montreal por 50 millones de dólares canadienses. Las ganancias netas de la venta se utilizarán para pagar parcialmente los bonos senior garantizados y no convertibles emitidos en julio de 2023. Se espera que la transacción se cierre a finales de 2024, lo que reducirá la deuda a largo plazo de Lion, pero no afectará su liquidez a corto plazo ni su posición de efectivo. Los tenedores de los bonos actualmente tienen una hipoteca de primer rango sobre los derechos inmobiliarios del centro de innovación.
라이온 일렉트릭 (NYSE: LEV)은 퀘벡 미라벨에 위치한 혁신 센터 시설을 몬트리올 공항에 5천만 캐나다 달러에 판매하는 최종 계약을 체결했습니다. 판매로 얻은 순수익은 2023년 7월에 발행된 회사의 선순위 담보 비전환 사채를 부분적으로 상환하는 데 사용될 것입니다. 이 거래는 2024년 말까지 마무리될 것으로 예상되며, 라이온의 장기 부채를 줄일 것이지만 단기 유동성 및 현금 위치에는 영향을 미치지 않을 것입니다. 현재 사채 보유자는 혁신 센터 시설의 부동산 권리에 대해 1순위 저당권을 가지고 있습니다.
Lion Electric (NYSE: LEV) a conclu un accord définitif pour vendre son centre d'innovation à Mirabel, au Québec, à Aéroport de Montréal pour 50 millions de dollars canadiens. Le produit net de la vente sera utilisé pour rembourser partiellement les débentures senior sécurisées non convertibles émises en juillet 2023. La transaction, qui devrait être finalisée d'ici la fin de 2024, réduira la dette à long terme de Lion sans affecter sa liquidité à court terme ni sa position de trésorerie. Les détenteurs de débentures détiennent actuellement une hypothèque de première rang sur les droits immobiliers de l'établissement d'innovation.
Lion Electric (NYSE: LEV) hat eine endgültige Vereinbarung getroffen, um seine Innovationszentrum-Einrichtung in Mirabel, Québec, für 50 Millionen kanadische Dollar an den Flughafen Montreal zu verkaufen. Die Nettoerlöse aus dem Verkauf werden verwendet, um die senior gesicherten nicht wandelbaren Anleihen, die im Juli 2023 ausgegeben wurden, teilweise zurückzuzahlen. Die Transaktion, die bis Ende 2024 abgeschlossen sein soll, wird die langfristige Verschuldung von Lion verringern, hat jedoch keine Auswirkungen auf die kurzfristige Liquidität und die Kassaposition. Die Anleihegläubiger halten derzeit eine Grundpfandrechte der ersten Rangordnung über die Immobilienrechte des Innovationszentrums.
- Sale of innovation center for C$50 million will reduce long-term debt
- Transaction maintains current short-term liquidity position
- Company carrying significant debt requiring asset sale for partial repayment
- Divestment of innovation facility could impact future R&D capabilities
Insights
Net proceeds to be used towards partial repayment of the Company's senior secured non-convertible debentures issued in July 2023
All of the net proceeds from the transaction are intended to be used towards the partial repayment of the Company's senior secured non-convertible debentures issued in July 2023, holders of which currently benefit from a first ranking hypothec over the immovable/real rights related to the innovation center facility. As a result, while the transaction is expected to reduce the Company's long-term indebtedness, it will not impact the Company's short term liquidity and cash position.
Closing of the transaction is expected to occur before the end of 2024, subject to the satisfaction of customary closing conditions.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer of zero-emission vehicles, including 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 transaction, the satisfaction of applicable closing conditions and the expected timing to closing, 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 management's discussion and analysis 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 as at September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 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.
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