Under severe financial pressure, Lion Électrique could run out of money over the next year if the manufacturer of school buses and electric trucks is not able to replenish its coffers. There is “significant uncertainty” about the future of the Quebec company.
Posted at 5:24 p.m.
The Saint-Jérôme-based company issued this warning by unveiling its third quarter financial results on Wednesday, after the financial markets closed.
“There is no certainty that cash and cash flow will be sufficient to satisfy the Company’s obligations maturing over the next 12 months,” Lion said in a statement.
Lion indicates that it will also have to renegotiate agreements with its lenders – including the Caisse de dépôt et placement du Québec – in order to obtain further relaxations.
The months of July, August and September were difficult for the Quebec manufacturer, which saw its revenues plummet by 62%, to US$31 million. Its net loss was US$34 million per share, or 15 US cents per share, compared to US$20 million, or 9 US cents, in the third quarter of 2023.
During the quarter ending September 30, Lion delivered only 89 vehicles, 156 fewer than 245 in the same period a year ago.
Despite a trading session where the main indices ended markedly higher, on Wednesday, Lion’s stock dropped 3.7%, or 79 cents, to close at 79 cents on Bay Street.
More details to come.
Public money in Lion Électrique:
- 2008-2021: 7 million in subsidies from the Quebec government for research and development
- 2021: 19 million from Investissement Québec (IQ) for the purchase of shares
- 2021: 100 million in loans from Quebec and Ottawa
- 2022: 15 million in loans from the Caisse de dépôt et placement du Québec
- 2023: 98 million loaned by IQ and the FTQ Solidarity Fund
- 2024: 7.5 million in loan from the Quebec government
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- 178 millions
- Market value of Lion Électrique.
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