CALGARY,
AB, May 23, 2023 /PRNewswire/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or
"Exro"), is pleased to announce that it has completed its
previously announced bought deal financing, including the exercise
in full of the Underwriters' (as defined below) over-allotment
option, for a total of 15,525,000 common shares (the "Common
Shares") sold at a price of C$2.25
per Common Share for aggregate gross proceeds to the Company of
C$34,931,250 (the "Offering").
"We are very pleased to have successfully closed this financing
in what we know is a challenging market backdrop for investors",
said Exro CEO Sue Ozdemir. "We
appreciate the ongoing support of our largest shareholders and
welcome a host of new institutional investors to Exro. We look
forward to continuing our mission to build a valuable company on
behalf of all shareholders by investing the proceeds of this
Offering to progress our world-class manufacturing facility in
Calgary (on-track to begin series
production next quarter) and our next-generation technologies to
meet the growing demand for our advanced power controls for
electric vehicles as well as stationary energy storage
systems".
The Offering was co-led by Canaccord Genuity Corp., Stifel
Nicolaus Canada Inc., and Eight Capital on their behalf and on
behalf of a syndicate of underwriters that includes ATB Capital
Markets Inc. and National Bank Financial Inc. (collectively, the
"Underwriters"). In consideration for the services provided by the
Underwriters in connection with the Offering, on closing the
Company paid to the Underwriters a cash commission equal to 6% of
the gross proceeds raised under the Offering.
The Offering was completed by way of a prospectus supplement
dated May 17, 2023, and filed in all
provinces of Canada, other than
Quebec, under the Company's base
shelf prospectus dated May 8, 2023.
The Common Shares were also sold in the
United States on a private placement basis pursuant to an
exemption from the registration requirements of the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), and
other jurisdictions outside of Canada.
The Company intends to use the net proceeds from the Offering to
meet the capital expenditure and working capital obligations
associated with the definitive commercialization agreement ("DCA")
with Linamar Corporation (TSX: LNR) and for general working capital
purposes as set out in the prospectus supplement.
The securities offered in the Offering have not been, and will
not be, registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This news release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor shall
there be any sale of these securities in any jurisdiction in which
such offer, solicitation, or sale would be unlawful.
ABOUT EXRO TECHNOLOGIES INC.
Exro Technologies Inc. is a leading clean technology company
that has developed new generation power control electronics that
change how the world optimizes energy by expanding the capabilities
of electric motors and batteries. The company's innovative
technologies serve to bridge the performance-cost gap in e-mobility
(Coil DriverTM) and stationary energy storage (Cell
DriverTM), and act to accelerate adoption towards a
circular electrified economy by delivering more with less – minimum
energy for maximum results.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors
Visit us on social media @exrotech.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be
taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties, and other factors disclosed under the
heading "Risk Factors" in the Company's 2022 Annual Information
Form (available at www.sedar.com) and elsewhere in
filings with Canadian securities regulators, that could cause
actual results, performance, prospects, and opportunities to differ
materially from those expressed or implied by such forward-looking
statements. Specific risks associated with the DCA include, but are
not limited to: order volumes under the DCA do not materialize as
planned; the Company experiencing a significant delay in sourcing
the required capital equipment to support the DCA; and the Company
experiencing difficulties in the setting-up and commissioning of
capital equipment resulting in its inability to deliver products.
Although the Company believes that the assumptions and factors used
in preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed time
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2022, and financial
statements and related MD&A for the financial year ended
December 31, 2022, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated, or expected. Although the Company
has attempted to identify important risks, uncertainties, and
factors that could cause actual results to differ materially, there
may be others that cause results not to be as anticipated,
estimated, or intended. The Company does not intend, and does not
assume any obligation, to update this forward-looking information
except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the Investment
Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this press release.
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SOURCE Exro Technologies Inc.