Net Proceeds to be Used Towards Partial Repayment of Senior Secured Non-Convertible Debentures
Lion Electric Company Sells Innovation Center Facility to Aéroport de Montreal for C$50,000,000
MONTREAL, Dec. 5, 2024 /PRNewswire/ – The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today that it has reached a definitive agreement with Aéroport de Montreal to sell its innovation center facility located in Mirabel, Quebec, for a purchase price of C$50,000,000. This sale is subject to customary purchase price adjustments and closing conditions.
All of the net proceeds from the transaction are intended to be used towards the partial repayment of the Company’s senior secured non-convertible debentures issued in July 2023. The holders of these debentures currently benefit from a first ranking hypothec over the immovable/real rights related to the innovation center facility.
With this strategic decision, Lion Electric Company is taking steps to strengthen its financial position and meet its obligations to debenture holders. By selling the innovation center facility, the company can focus on its core business of manufacturing all-electric vehicles for urban transportation.
How Does This Affect Me?
As a consumer of electric vehicles or someone interested in sustainable transportation solutions, this decision by Lion Electric Company could have a positive impact on you. By repaying its debentures and streamlining its operations, the company may be able to invest more resources into research and development of innovative electric vehicles, potentially leading to better products and services for customers like you.
How Does This Affect the World?
The sale of Lion Electric Company’s innovation center facility and the use of proceeds towards debt repayment could have broader implications for the world. By improving its financial health, the company may be able to expand its reach and influence in the electric vehicle market, driving further adoption of sustainable transportation solutions and contributing to global efforts to reduce carbon emissions and combat climate change.
Conclusion
In conclusion, Lion Electric Company’s decision to sell its innovation center facility for C$50,000,000 and use the net proceeds towards the partial repayment of its senior secured non-convertible debentures is a strategic move aimed at strengthening the company’s financial position and focusing on its core business of manufacturing all-electric vehicles. This decision could have a positive impact on consumers of electric vehicles and contribute to global sustainability efforts.
