MONTREAL, Oct. 4, 2023
/CNW/ - Taiga Motors Corporation (TSX: TAIG) ("Taiga" or the
"Company"), a leading electric off-road vehicle manufacturer,
announced that it has entered into a $15
million Secured Term Loan Agreement with Export Development
Canada ("EDC"). The loan will support the Company's continued
growth towards producing approximately 1,000 vehicles in 2023.
Taiga is pleased to announce the closing of a term loan
agreement ("Term Loan") in a principal amount of $15 million with EDC. The Term Loan provides
Taiga with additional liquidity and flexibility in managing its
working capital. The Term Loan bears interest on the drawn funds at
the annual rate of the prevailing Canadian prime rate plus 5.00%
and provides for multiple advances over a nine-month drawdown
period, with the first draw being today on October 4, 2023. The Term Loan matures on
February 10, 2028.
"EDC's support is welcomed as Taiga expands deliveries of its
award-winning electric personal watercrafts and snowmobiles to
customers in Canada, United States and eventually across the globe.
The Term Loan allows added flexibility for Taiga to better manage
its working capital," stated Sam
Bruneau, CEO and Co-Founder of Taiga.
The Term Loan also contains limited affirmative and negative
covenants (including certain financial covenants relating to
current ratios and cashflows from operation) and events of default.
The incurrence of indebtedness and granting of security under the
Term Loan are specifically permitted under the terms of the
convertible debentures issued by Taiga in March and April 2023.
Production Progress
Update
Over the third quarter of 2023, Taiga made important progress on
ramping up operations producing 365 Orca personal watercrafts, a
105% increase over Q2 production and bringing the total production
in the first nine months of 2023 to 639 vehicles. Launched in
August, the Orca Performance model has enabled the Company to
materially increase its production efficiency. Despite initial
hurdles in part availability affecting the start of production, the
Company recently achieved an important milestone, producing more
than 50 vehicles per week. With the upcoming production change-over
to snowmobiles now in November, Taiga expects to produce
approximately 1,000 vehicles in 2023.
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the
powersports landscape with breakthrough electric off-road vehicles.
Through a clean-sheet engineering approach, Taiga has pushed the
frontiers of electric technology to achieve extreme power-to-weight
ratios and thermal specifications required to outperform comparable
high-performance combustion powersports vehicles. After introducing
its first models of electric snowmobiles and personal watercraft in
2022, Taiga has been focusing on its production ramp up and
deliveries to recreational and commercial customers, who are
seeking better ways to explore the great outdoors without
compromise. For more information, visit www.taigamotors.com.
Forward-Looking
Statements
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation. Such
forward-looking information includes, but is not limited to,
information on our objectives and the strategies to achieve these
objectives, the expected operations and condition of the Company,
the Company's growth rates, the Company's future objectives and
strategies to achieve those objectives, including, without
limitation, organic growth, expected timelines for achieving mass
production capabilities, the ramp-up of its current facility, the
ability to obtain sufficient financing, as well as information with
respect to our beliefs, plans, expectations, anticipations,
estimates and intentions. This forward-looking information is
identified by the use of terms and phrases such as "may", "would",
"should", "could", "expect", "intend", "estimate", "anticipate",
"plan", "foresee", "believe", and "continue", as well as the
negative of these terms and similar terminology, including
references to assumptions, although not all forward-looking
information contains these terms and phrases.
Forward-looking information is provided for the purposes of
assisting the reader in understanding the Company and its business,
operations, prospects and risks at a point in time in the context
of historical and possible future developments and therefore the
reader is cautioned that such information may not be appropriate
for other purposes.
Forward-looking information is based on a number of assumptions
and is subject to a number of risks and uncertainties, many of
which are beyond our control, which could cause actual results to
differ materially from those that are disclosed in, or implied by,
such forward-looking information. These risks and uncertainties
include, but are not limited to, the conditions precedent for
future disbursements of the Term Loan, the effective further supply
chain disruptions, and the impact of such disruptions on production
and those described in the Company's management's discussion and
analysis for the three and six-month periods ended June 30, 2023, and under the "Risk Factors"
section of the Company's annual information form filed on
March 30, 2023 on the Company's SEDAR
profile at sedar.com. Forward-looking statements reflect
management's current beliefs, expectations and assumptions and are
based on information currently available to management. Readers are
cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the future
circumstances, outcomes or results anticipated or implied by such
forward-looking statements will occur or that plans, intentions or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
known and unknown risks and uncertainties and other factors that
could cause actual results to differ materially from those
contemplated by such statements.
All of the forward-looking information contained in this press
release is qualified by the foregoing cautionary statements, and
there can be no guarantee that the results or developments that we
anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. Unless
otherwise noted or the context otherwise indicates, the
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
SOURCE Taiga Motors Corporation