Already in a very poor financial position, the company Lion Électrique saw the value of its stock collapse on Thursday to reach a new low on the stock market.
The title of the Quebec company fell 20 cents, or 25%, Thursday morning, to trade at 59 cents on the Toronto Stock Exchange.
The day before, the Quebec manufacturer of electric buses had warned that it fears running out of money within a year to continue its activities if it cannot find other sources of financing.
As everything is uncertain in this world, there is no guarantee that Lion will succeed in doing so, especially since the Saint-Jérôme company must count on the leniency of its short-term lenders to survive.
Uncertainty
The summer was very difficult for Lion Électrique. During the third quarter, the company widened its loss and saw its sales decline.
The company said Wednesday that its financial statements suggest “significant uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.”
“Based on management’s current assessment, there is no certainty that cash and forecast cash flow from operations will be sufficient to satisfy the Company’s obligations maturing within the next twelve months.” , we could read in a press release.
Last July, the Quebec government granted a $7.5 million loan to Lion Électrique to allow it to breathe a little.
At the same time, the company announced that it had obtained relaxations and other modifications to loans contracted with the National Bank, the Bank of Montreal, the Desjardins Movement, Finalta Capital, the Caisse de dépôt et placement du Quebec, the Mach Group and the Mirella and Lino Saputo Foundation.
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