Quebec to reinvest up to $7.5 million in Lion Électrique

Quebec to reinvest up to $7.5 million in Lion Électrique
Quebec to reinvest up to $7.5 million in Lion Électrique

In a poor financial position, the vehicle manufacturer Lion Electric announced on Tuesday that it had obtained a new loan of up to $7.5 million from the Ministry of Economy, Innovation and Energy (MEIE).

• Read also: Nearly 300 Lion workers join union: ‘The employer tried everything to prevent this group of workers from joining our union’

• Read also: Lion Electric’s slide continues: $22 million in losses in the first quarter

Initially worth $5 million, the loan could be increased to $7.5 million “under certain conditions,” Lion said in a press release.

The loan carries a fixed annual interest rate of 13% and provides for “a 12-month moratorium on the payment of principal and interest,” added the St-Jérôme company.

Relaxations

Lion also announced on Tuesday that it had obtained flexibility and other modifications to loans taken out with the National Bank, the Bank of Montreal, the Desjardins Group, Finalta Capital, the Caisse de dépôt, the Mach Group and the Mirella and Lino Saputo Foundation.

Lion shares fell more than 2% on Tuesday to trade at $1.20 on the Toronto Stock Exchange.

Union

Let us recall that the approximately 300 workers at the Lion plant in St-Jérôme recently unionized with the International Association of Machinists and Aerospace Workers.

Since last fall, the company has carried out approximately 370 layoffs and terminations in Quebec and Illinois.

At the end of March, Lion held US$4.8 million in cash, down from US$30 million three months earlier.

Public aid to Lion Electric

U.S
  • March 2020: $5M (debenture)
  • July 2021: $50M (loan)
  • July 2023: $46.3 million (debenture)
Investment Quebec
  • 2021-2021: 18,9 M$ (actions)
Quebec Deposit and Investment Fund
  • November 2022: $15M (credit facility)
-

-

PREV Meal cancelled at the Cornouaille Festival: “shocked” by the director, the bagadou of Quimper counter-attack
NEXT Come and experience the J.O’Champs: a sporting and festive day at the 3 Villes Social Center