Hyliion Holdings Announces Strategic Review of Alternatives for Electric Powertrain Business
October 10 2023 - 4:15PM
Business Wire
Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a developer of
KARNO generator and electric powertrain technologies, today
announced that it has engaged strategic expert advisors to explore
a range of options for its powertrain business.
The commercial vehicle electrification industry is evolving,
with fleets committed to ultimately reducing their environmental
footprint through practical solutions. Hyliion, like others, has
experienced slower-than-anticipated market adoption as fleets
undertake a gradual transition to electric trucks. Hyliion’s
ongoing participation in commercial vehicle electrification will
require continued investment, while addressing escalating component
and production costs, meeting ongoing regulatory requirements, and
aligning with a new CARB mandate for fleet adoption of electric
trucks.
“While Hyliion’s capital position is currently strong, its
proprietary technology is transformative, and commercialization is
progressing on track, additional future capital will ultimately
need to be raised against the backdrop of uncertain market
conditions if we continue on our current trajectory," said Thomas
Healy, Founder and CEO of Hyliion. “We therefore believe now is the
right time to consider a host of strategic options for our electric
powertrain business to ensure that we deploy capital most
effectively and maximize value for our shareholders.”
With the recent receipt of CARB certification and the beginning
of extended fleet trials with customers, Hyliion has completed all
milestones on its publicized path to commercialization of the
Hypertruck ERX powertrain. Despite this progress, the company is
taking steps to navigate the shifting landscape in commercial
vehicle electrification.
Hyliion will continue commercialization of the fuel-agnostic
KARNO generator, which the company expects to compete effectively
in the stationary generator market due to its superior operating
characteristics. Given the rising strain on electrical
infrastructure, notably from electric vehicles, the KARNO generator
is positioned well to address these challenges. The insights and
learnings from the powertrain segment further strengthen endeavors
with the KARNO generator.
The company intends to complete the assembly of initial
production trucks and continue showcasing the solution in extended
fleet trials as it pursues this strategic review process. However,
certain efforts will be paused, including securing orders for
Hypertruck ERX-equipped trucks and new powertrain development
work.
Hyliion will host a conference call at 11:00a.m. ET / 10a.m. CT
on Wednesday, October 11 to discuss the strategic review. Those
wishing to participate can access the call using the links
below:
Conference Call Online Registration:
https://conferencingportals.com/event/QxykXjQU
Access the Webcast:
https://events.q4inc.com/attendee/905274471
Following the conference call, Hyliion will provide updates as
required by law or otherwise deemed appropriate by the board. The
board of directors has not set a deadline or definitive timetable
for the completion of the strategic review, and there can be no
assurance that this process will result in any particular
outcome.
About Hyliion
Hyliion is committed to reducing emissions in commercial
vehicles. The company’s primary focus is providing electrified
solutions that offer fleet operators an opportunity to decrease
fuel and operational costs, while integrating into existing
operations. Located in Austin, Texas, Hyliion designs and develops
electrified powertrain solutions suitable for a wide range of Class
8 semi-trucks. Beyond powertrains, Hyliion is developing the KARNO
system: a fuel-agnostic, additive manufacturing-enabled generator
designed for both stationary power generation and heavy-duty
transport, promising heightened efficiency and decreased emissions.
The company aims to offer innovative, yet practical solutions to
contribute positively to the environment in the commercial
transport sector. For further information, please visit
www.hyliion.com.
Forward Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
present or historical fact included in this press release,
regarding Hyliion and its future financial and operational
performance, as well as its strategy, future operations, estimated
financial position, estimated revenues, and losses, projected
costs, prospects, plans and objectives of management are forward
looking statements. When used in this press release, including any
oral statements made in connection therewith, the words “could,”
“should,” “will,” “may,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project,” the negative of such terms and
other similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on management’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. Except as otherwise required
by applicable law, Hyliion expressly disclaims any duty to update
any forward-looking statements, all of which are expressly
qualified by the statements herein, to reflect events or
circumstances after the date of this press release. Hyliion
cautions you that these forward-looking statements are subject to
numerous risks and uncertainties, most of which are difficult to
predict and many of which are beyond the control of Hyliion. These
risks include, but are not limited to, our status as an early stage
the Company with a history of losses, and our expectation of
incurring significant expenses and continuing losses for the
foreseeable future; our ability to develop to develop key
commercial relationships with suppliers and customers; our ability
to retain the services of Thomas Healy, our Chief Executive
Officer; our ability to disrupt the powertrain market; the effects
of our dynamic and proprietary solutions on commercial truck
customers; the ability to accelerate the commercialization of the
Hypertruck ERX; our ability to meet 2023 and future product
milestones; the impact of COVID-19 on long-term objectives; the
ability of our solutions to reduce carbon intensity and greenhouse
gas emissions, the expected performance and integration of the
KARNO generator and system; the outcome of the strategic review of
the powertrain business conducted by the board of directors, and
the other risks and uncertainties described under the heading “Risk
Factors” in our other SEC filings including in our Annual Report
(See item 1A. Risk Factors) on Form 10-K filed with the Securities
and Exchange Commission (the “SEC”) on February 28, 2023 for the
year ended December 31, 2022. Given these risks and uncertainties,
readers are cautioned not to place undue reliance on such
forward-looking statements. Should one or more of the risks or
uncertainties described in this press release occur, or should
underlying assumptions prove incorrect, actual results and plans
could different materially from those expressed in any
forward-looking statements. Additional information concerning these
and other factors that may impact Hyliion’s operations and
projections can be found in its filings with the SEC. Hyliion’s SEC
Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully
review and consider the various disclosures made in such
filings.
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version on businesswire.com: https://www.businesswire.com/news/home/20231010834909/en/
Hyliion Holdings Corp. Ryann Malone
press@hyliion.com (833)
495-4466 Kellen Ferris ir@hyliion.com (737) 292-8649
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