MONTREAL, March 11, 2024 /CNW/ - Taiga Motors Corporation (TSX: TAIG) ("Taiga" or the "Company"), a leading electric off-road vehicle manufacturer, today announced that Export Development Canada ("EDC") has agreed to upsize its existing senior secured credit facility available to Taiga by providing up to approximately $5.25 million of additional funding (the "Upsized EDC Credit Facility") for working capital and general corporate purposes through an amended and restated loan agreement (the "A&R Loan Agreement"), such as supporting its omnichannel retail and dealer network growth.
"EDC's continued support of and confidence in Taiga comes at an important time as we ramp up the sales of our award-winning electric personal watercraft (PWC) and snowmobiles in North America and key global markets. The Upsized EDC Credit Facility will enable Taiga to better manage its working capital and to support our network growth as we continue to expand our international sales and operations." stated Sam Bruneau, CEO and Co-Founder of Taiga.
As of the date of this press release, Taiga has drawn down $3.75 million of additional funding under the Upsized EDC Credit Facility. In addition, EDC may decide, in its sole discretion, whether to advance to the Company up to $1.5 million of additional funding under the A&R Loan Agreement. Borrowings under the Upsized EDC Credit Facility bear interest at the prevailing annual Canadian prime rate plus 7.00% and they mature and are repayable on December 31, 2024. The A&R Loan Agreement also contains limited affirmative and negative covenants and other customary provisions and mandatory repayment events (including certain financial covenants relating to current ratios and cashflows from operation) and events of default.
Production Update
During the fourth quarter of 2023, Taiga continued to make progress on further ramping up operations, producing 417 units, its highest throughput in a quarter notwithstanding a line change from PWC to Snowmobile and the Annual Holidays shutdown. During the quarter, Taiga produced 243 OrcaTM PWC and 174 NomadTM snowmobiles. We are very proud to announce that our 2023 production totaled 1,056 vehicles, demonstrating a significant growth in production capacity over the 133 vehicles produced in 2022.
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit www.taigamotors.com.
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable securities laws. Such forward-looking information includes, but is not limited to, information on our objectives and the strategies to achieve these objectives, the expected operations and condition of the Company, the Company's growth rates, the Company's future objectives and strategies to achieve those objectives, including, without limitation, organic growth, the ability to obtain sufficient financing, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements generally, but not always, can be identified using forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described in the Company's management's discussion and analysis for the three and nine month periods ended September 30, 2023, and under the "Risk Factors" section of the Company's annual information form filed on March 30, 2023, available on the Company's SEDAR profile at www.sedarplus.ca.
Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes, or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.
All forward-looking statements included in this news release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this news release, and except as required by applicable law, Taiga does not undertake any obligation to publicly update or revise any forward-looking statement, whether because of added information, future events or otherwise.
SOURCE Taiga Motors Corporation
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