A little over a year after lending $98M with Investissement Québec, the Fonds de solidarité FTQ and Fondactionthe Minister of the Economy, Christine Fréchette, is ready to once again take out the checkbook to help Lion, provided that the private sector makes its contribution.
“We are listening to what is being discussed and we are ready to consider options. But it cannot just be the government of Quebec,” indicated the office of the Minister of Economy, Innovation and Energy (MEIE), Christine Fréchette, on Friday, in a statement sent to the Journal.
“Lion is an important company for the Quebec economy and for the energy transition. The company is in discussions with its investors. It is essential to have private investors,” we insisted.
Among Lion’s significant shareholders are Power Sustainable (34.1%), Marc Bédard (11.5%) and Alexandre Taillefer’s XPND Capital firm (2.3%).
Press conference regarding the announcement of a battery pack assembly plant for the Compagnie Électrique Lion of Saint-Jérôme, in Montreal, on Monday, March 15, 2021. In this photo: François Legault (Prime Minister of Quebec) and Justin Trudeau (Prime Minister of Canada) JOEL LEMAY/AGENCE QMI
Photo Agence QMI, JOËL LEMAY
Stock market fall
Last Thursday, Lion’s stock took a 28% nosedive on the stock market. Analysts like Benoit Poirier of Desjardins said they were troubled by its financial performance.
“We prefer to stay on the sidelines until we see less volatility in financial results and better clarity on future financing prospects,” the analyst said.
At the National Bank, we noted that liquidity is precarious.
“LEV ended the third quarter with $27 million in total liquidity, including $26 million in cash and $1 million available on its revolving credit facility, up slightly from $25 million in the second quarter” , observes Rubert Merer.
Last month, The Journal reported that three months after obtaining a new loan of up to $7.5 million from Quebec, Lion Électrique currently wanted to sell assets to “improve its liquidity” and “strengthen its financial situation.”
Lion Electric’s stock has lost nearly 98% of its value since its IPO. It was worth 47 cents Friday afternoon.
At its peak, in 2021, it flirted with $25.
– With the collaboration of Sylvain Larocque
Public aid to Lion Électrique
WE
• March 2020: $5M (debenture)
• July 2021: $50M (loan)
• July 2023: $46.3M (debenture)
Innovation Canada
• July 2021: $50M (loan)
FTQ Solidarity Fund
• July 2023: $25M (loan)
Investment Quebec
• 2021-2021: 18,9M$ (actions)
Caisse de dépôt et placement du Québec
• November 2022: $15M (credit facility)
Fondaction
• July 2023: $7.5M (loan)
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