RE:RE:Correspondence with Minister Fitzgibbon at Linkedin Fitzgibbon's asset manager holds millions in Lion
Electric bus manufacturer benefits from an assistance program from Quebec City
PHOTO MARTIN ALARIE
Lion President Marc Bdard surrounded by Ministers Benoit Charette, Sylvie D'Amours and Pierre Fitzgibbon, as well as Hydro-Qubec Vice-President Claudine Bouchard, during an announcement by Compagnie lectrique Lion in November 2019.
JEAN-MICHEL GENOIS GAGNON and PHILIPPE LANGLOIS
Thursday, 14 April 2022 00:00
UPDATED Thursday, 14 April 2022 00:00
Director Michel Ringuet, agent of the blind trust of the Minister of the Economy, Pierre Fitzgibbon, held at the end of December through another company for more than C$14 million in market value of shares of Compagnie lectrique Lion, which was propelled by the Legault government in 2021.
• Also read: Agent of his trust: Mr. Fitzgibbon cut the bridges with Mr. Ringet
• Also: Quebec pushes to bankruptcy Bus Thomas
Michel Ringuet, Lion Electric Administrator
In recent days, the Quebec electric vehicle manufacturer has published the first solicitation circular in its history in preparation for the annual meeting of its shareholders on May 6.
Recall that Lion took advantage of $100 million in loans from Quebec City and Ottawa in 2021 before making its IPO, in addition to benefitting from the provincial assistance program for the purchase of electric school buses, which requires that vehicles be manufactured in Canada.
Listen to Yves Daoust, director of the Silver section of the Montreal newspaper and the Journal de Qubec, on QUB radio:
Drummondville's concessionaire, Autobus Thomas, recently shouted the heart in Le Journal so that Quebec City revises this program, otherwise management plans to declare bankruptcy by January.
The circular states that Mr. Ringuet has been a member of Lion's board of directors since 2017 and senior director of the board since May 2021.
As of December 31, it held, through Capital Mimar, of which it is president and majority shareholder, 1.17 million common shares of the manufacturer for a value of US$11.61 million (C$14.6 million).
"Mr. Ringuet directly and indirectly controls the majority of the voting shares of Capital Mimar Inc, "says the document.
The latter also mentions that Power Power Corporation owns 35.4% of the outstanding shares. According to the value of the stock exchange, yesterday, this represented about CAN$630 million.
For Mr. Ringuet, while her company still holds the same number of shares, it now owns more or less C$11 million of Lion due to the decline in the stock in recent months.
Last year, the Minister of the Economy confirmed to the Journal that he had met with Mr. Ringing at a private party in June 2020, despite the fact that the two men had to limit their contacts, because of ethical guidelines.
No conflict of interest
For UQAM's professor and ethics expert, Michel Sguin, it is difficult to demonstrate that there could be a real conflict of interest or an appearance of conflict of interest in this file.
"M. Fitzgibbon or people close to him, however, must not have personal interests [in Leo]," he warns.
The office of the Minister of the Economy did not respond to the Journal's email. It was also not possible to reach Mr. Ringet.
The best paid
In Lion's circular, we learn that the five highest-paid executives shared US$4.24 million (C$5.3 million) in salaries, benefits and bonuses.
President and founder Marc Bdard received US$587,114 (CAD $737,600), an increase of 167% over 2020. The market value of its shares in December was more than CAN$330 million.
The manufacturer also awarded "options-based allocations" of US$1.96 million (CDN$2.5 million) to Chief Commercial Officer Brian Piern, "to motivate him to enter into a full-time employment contract with the company". His total salary reached US$2.39 million (C$3 million).
Mr. However, Piern will not be able to take advantage of its options until the value of the security reaches US$18.69 (C$23.5). In 2021, Lion realised a loss of more than US$43 million (C$54 million).