The Lion Electric company, which is facing significant financial difficulties, revealed Monday that it was considering putting itself up for sale.
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• Also read: Lion Électrique plans to sell assets to get its head above water
This is the first time that the manufacturer of electric buses and trucks has publicly discussed this possibility.
“The company continues […] to examine all potential sources of financing and/or other alternatives, which could include the sale of the company or certain of its assets or its strategic investments and/or any other similar opportunity or possibility”, reads- we in a press release published Monday morning.
Last month, Lion simply opened the door to asset sales, not to mention divesting the entire company.
Difficult negotiations
Cash-strapped Lion Electric has been in discussions with its lenders and other investors for several weeks.
On Monday, the company announced that some of its lenders, including the Caisse de dépôt, have agreed to extend by two weeks, until November 30, a grace period which allows it not to respect certain conditions associated with loans .
When publishing its second quarter results two weeks ago, Lion indicated that there was “significant uncertainty likely to cast significant doubt on [sa] ability to continue its operation.
Remember that Quebec has invested nearly $160 million in Lion Électrique in recent years. The company’s largest shareholder is the Montreal conglomerate Power Corporation.
