Update: Exro Technologies Offers Operational Update in Year-End Shareholder Letter; National Bank Maintains Rating
09:55 AM EST, 12/21/2023 (MT Newswires) -- Exro Technologies Inc. (EXRO.TO), a clean-technology company that develops new generation power-control electronics that expand the capabilities of electric motors and batteries, and a company that saw its shares fall more than 3% and nearer to 52-week lows yesterday, overnight Wednesday provided an operational update as it nears the end of the fourth quarter.
Regarding the Cell Driver UL Certification progress, the company said it remains on track to complete testing by Dec. 31. Exro said it has passed a series of tests and this week initiated the final test requirement at Intertek Laboratories.
Also, Exro said it has completed the first track testing validation requirements for its Coil Driver system in its project with propulsion technology partner SEA-Electric.
On NDA partners, the company said it was not able to lift at least one of the NDAs by the end of 2023, as previously targeted.
"While we worked hard to take our partners out of NDA, we were not able to achieve this milestone by year-end. That said, this does not reflect great achievements with our NDA partners, and we would like to provide two positive NDA partner updates, both of which include promising near-term timeframes for lifting the NDA," the company said.
Further, the company issued 679,544 common shares at a deemed price of $1.32 to the debenture holders as payment for the interest.
Meanwhile, National Bank said Thursday that it has maintained its sector perform rating on Exro with a $2.25 price target while monitoring the execution of the company's plans.
"With shares trading down 25% in the past month and most of the incremental delays already disclosed, we believe the impact of the update on shares should not be material. Focus will continue to be on EXRO's initial sales ramp, revealing NDA partners and securing financing," the analysts said.
The company said it has received verbal commitments for more than 30 units to be delivered in 2024. This compares to NBF's estimate of 110 units.
"While delivery timelines appear to be shifting to the right, the delay does not impact our view on the growth potential of the business," the analysts noted.
The company's shares rose 2.5% on last look on Thursday.
Price: 1.21, Change: +0.03, Percent Change: +2.54