Exro Announces Definitive Commercialization Agreement Exro and Linamar Corporation sign definitive agreement to serially produce and commercialize the parties' integrated electric beam axle product for Class 3-6 vehicles:
- The agreement is set for an initial five-year term and follows successful continued testing and validation by Linamar of the Exro Coil DriverTM product samples delivered in Q4 2022
- In accordance with the agreement, by Q4 2023 the parties intend to build a product demonstration vehicle to be utilized as a joint marketing asset for the medium duty commercial vehicle market
- The agreement contemplates the start of series production by Q4 2024 and includes annual commercial volume targets that build to 25,000 units per annum by 2027
- Linamar is granted exclusivity to Exro's Coil DriverTM product for use in medium duty Class 3-6 electric beam axle applications
- To meet the capex and working capital requirements associated with the definitive agreement, Exro has entered into a bought deal financing agreement for gross proceeds of C$30 million
CALGARY, AB, May 15, 2023 /CNW/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean-technology company that develops new generation power-control electronics that expand the capabilities of electric motors and batteries, is pleased to announce the signing of a definitive commercialization agreement ("DCA", or "agreement") with strategic partner, and global tier-1 automotive supplier, Linamar Corporation (TSX: LNR) ("the Parties"). The agreement follows successful testing and validation by Linamar of the Parties' co-developed integrated electric axle ("eAxle") utilizing Exro's Coil DriverTM traction inverter and signals a commitment by the Parties to commercialize the product for multi-year series production. Concurrently, to meet the capital expenditure and working capital requirements associated with the DCA, Exro announces that the Company has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., and Eight Capital on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 13,500,000 common shares in the capital of the Company (the "Common Shares") at a price of C$2.25 per Common Share for gross proceeds to the Company of C$30,375,000 (the "Offering").
Exro Announces Definitive Commercialization Agreement with Linamar and C$30 Million Bought Deal Financing (newswire.ca)