- Entered into a strategic agreement with Linamar Corporation
("Linamar") to develop an advanced electric axle
("e-Axle") utilizing Coil DriverTM technology to
improve cost and performance of Linamar's e-Axle product line.
- Successfully completed the pilot of the Battery Control System
("BCS") in operating a second life energy storage
environment.
- Unveiled a new application for the Coil DriverTM,
including the potential to dramatically reduce the cost and
complexity associated with deploying electric vehicle
infrastructure at scale.
- The Company's common shares began trading on the Toronto Stock
Exchange on July 8, 2021.
- Announced the opening of a US headquarters in Mesa, Arizona, joining a robust e-mobility,
and research and development ecosystem in the greater Phoenix area.
CALGARY, AB, Aug. 11, 2021 /CNW/ - Exro Technologies Inc.
(TSX: EXRO) (OTCQB: EXROF) (the "Company" or
"Exro"), a leading clean technology company which has
developed a new class of power electronics for electric motors and
batteries, is pleased to announce its financial results for the
quarter-ended June 30, 2021.
In June Exro announced a Strategic Development Agreement
with Linamar for an Electric Drive Solution to Advance Electric
Vehicle Adoption. "We are very excited for this development with
Linamar, who has been a staple in auto industry manufacturing for
decades," said Sue Ozdemir, Chief
Executive Officer of Exro. "This strategic development agreement
marks one of our biggest milestones
to date and represents a huge opportunity for us to become an
integral part of the electric vehicle ("EV") supply
chain for major automotive companies."
The past few months have included strong investment in the
progress of research and development ("R&D") and
manufacturing facilities. The Company has placed orders for
additional test equipment in Calgary and Arizona to accelerate the ongoing projects.
The total additional investment of $2.4
million covers key dynamometer equipment, and $0.2 million has been spent in ordering the
equipment as of June 30, 2021. Exro
is also gearing up its world class automotive facility in
Calgary. This will include the
building of an automotive standard surface-mount technology
("SMT") production and printed-circuit board ("PCB")
assembly lines in the 37,000 square foot facility, with
anticipation of future orders and production of the Coil Driver
products as previously announced. $17
million has been allocated to invest in this state of art
facility. As at the end of June 2021,
the Company has spent approximately $2
million against the $17
million planned investment.
In July, Exro unveiled a new application for the Coil
Driverᵀᴹ technology to reduce the cost and complexity of
deploying EV infrastructure at scale. Currently, EVs require three
different types of power electronics components to power the
vehicles in motion and charge the batteries from the grid or
renewable energy sources: a motor drive, on-board charger, and
external DC fast charger. Exro engineers found that the Coil
Driverᵀᴹ technology has the ability to replace all three
components. "Unlocking the ability for the Coil Driverᵀᴹ to
simplify and streamline fast charger deployments for charge point
operators and automakers has the potential to be a game changer,"
said Exro CEO Sue Ozdemir.
Q2 2021
FINANCIAL HIGHLIGHTS
For the six months ended June 30,
2021
- Comprehensive loss of $10,419,364
(Q2 2020 – $3,771,451).
- Selling, general and administration expense increased by
$747,853 to $1,928,897
- Payroll and consulting fees increased by $1,131,199 to $2,721,804
- Research and development increased by $2,547,165 to $3,023,177
- Share based payments expense increased by $4,706,198 to $5,027,511
For the three months ended June 30,
2021
- Comprehensive loss of $3,742,844
(Q2 2020 – $2,246,269).
- Selling, general and administration expense increased by
$273,281 to $1,008,925
- Payroll and consulting fees increased by $623,946 to $1,495,974
- Research and development increased by $1,021,895 to $1,322,025
- Share based payments expense increased by $2,499,476 to $2,676,106
The main drivers for the overall cost increases are additional
expenditures incurred as the Company is transitioning from a
proof-of-concept stage to a commercialization phase and preparing
for future Coil Driverᵀᴹ production. Research and development
expenses increased by 535% for the six months ended June 30, 2021, due to the increase of several
validation projects for commercialization and continued research
and development on next generation Coil Driverᵀᴹ and BCS
technology. Exro remains focused on intelligently utilizing capital
to attract top talent across all business functions and increasing
brand awareness.
SECOND QUARTER OPERATING HIGHLIGHTS
On April 6, 2021, the Company
issued 1,100,000 stock options to certain directors, employees, and
consultants with an exercise price of $4.77 per common share. The options are
exercisable for a period of five years from the grant date.
1,050,000 of the options granted will vest 33% six months after
grant, 33% twelve months after grant and the remaining 18 months
after grant. The remaining 50,000 stock options granted will vest
25,000 on April 30, 2021 and 25,000
on December 31, 2021.
On April 27, 2021, the Company
announced that it has signed a supply agreement with
Vicinity to deploy Exro enhanced electric buses. Vicinity (formerly
Grande West Transportation Group) is a leading supplier of advanced
shuttle transportation vehicles for public and commercial use. Exro
will supply the Coil Drive System technology and Vicinity will
conduct operational validation through deployment of an optimized
electric powertrain for Vicinity's suite of electric buses. The
Coil Drive System solution is expected to enable the next
generation of electric buses with improved performance that
accelerates the transition to a sustainable public transit system.
Vicinity will test and validate the Coil Driver™ powertrain
integration with the intent of implementing it in future serial
production batches of the electric bus product line.
On June 17, 2021, Exro announced a
strategic development agreement with Linamar, a global
powerhouse in automobile parts manufacturing, to develop an
advanced electric drive solution for electric
vehicles. Linamar and Exro have agreed to develop an advanced
e-Axle utilizing Coil Driver™ technology to improve cost and
performance of Linamar's e-Axle product line. An e-Axle is an
integrated electric drive solution for battery electric vehicles
("BEV") or fuel cell electric vehicles ("FCEV"). The
integrated solution aims to provide better manufacturing costs and
a more efficient volume usage, without sacrificing key performance
capabilities.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2021, the Company
had cash of $33,503,667 and amounts
receivable of $124,219, which
primarily consist of GST refund. The Company had accounts payable
and accrued liabilities of $1,244,958.
RESULTS OF OPERATIONS AND SELECTED FINANCIAL DATA
for the 3 months
ended
|
Revenue
|
Net and
comprehensive
loss
|
Basic and
diluted
loss per common
share
|
Weighted
average
number of common
shares
|
|
|
|
|
|
June 30,
2021
|
-
|
(3,742,844)
|
(0.03)
|
120,263,248
|
|
|
|
|
|
June 30,
2020
|
-
|
(2,246,269)
|
(0.03)
|
83,002,396
|
|
|
|
|
|
OUTSTANDING SHARE DATA
As of August 10, 2021, there were 120,577,606 Common Shares
issued and outstanding, and other securities convertible into
Common Shares as summarized in the following table:
|
Number Outstanding
as of
August 10, 2021
|
Number Outstanding
as of
June 30, 2021
|
|
|
|
Common Shares issued
and outstanding
|
120,577,606
|
120,418,656
|
|
|
|
Options
|
10,766,635
|
10,987,085
|
|
|
|
Warrants
|
1,855,061
|
1,860,561
|
|
|
|
ADDITIONAL INFORMATION
The audited consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2020, dated April 6, 2021, can be viewed at
www.exro.com/investors or on SEDAR under Exro Technologies
Inc. at www.sedar.com.
Unless otherwise noted, all figures are in Canadian currency,
Cdn.
About Exro Technologies Inc.
Exro is a clean technology company pioneering intelligent
control solutions in power electronics to help solve the most
challenging problems in electrification. Exro has developed a new
class of control technology that expands the capabilities of
electric motors, generators, and batteries. Exro enables the
application to achieve more with less energy consumed.
Exro's advanced motor control technology, the Coil
DriverTM, expands the capabilities of electric
powertrains by enabling intelligent optimization for efficient
energy consumption. Exro is working with many partners from all
over the world to bring their technology to the electric mobility
industries and beyond.
For more information visit our website at www.exro.com.
Visit us on social media @exrotech.
LinkedIn
https://www.linkedin.com/company/exro-technologies-inc
Twitter
https://twitter.com/exrotech
Facebook
https://www.facebook.com/exrotech/
ON BEHALF OF THE BOARD OF DIRECTORS
Sue Ozdemir, Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking
statements and forward-looking information (together,
"forward-looking statements") within the meaning of applicable
securities laws. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "will be taken", "occur" or "be achieved".
Forward looking statements involve risks, uncertainties and other
factors disclosed under the heading "Risk Factors" and elsewhere in
the Company's filings with Canadian securities regulators, that
could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although the Company believes
that the assumptions and factors used in preparing these
forward-looking statements are reasonable based upon the
information currently available to management as of the date
hereof, actual results and developments may differ materially from
those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2020, and financial
statements and related MD&A for the financial year ended
December 31, 2020, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company has attempted
to identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended. The
Company does not intend, and does not assume any obligation, to
update this forward-looking information except as otherwise
required by applicable law.
Some of the risks which could affect future results and could
cause results to differ materially from those expressed in the
forward-looking information and statements contained herein include
the risk factors set out in Exro's annual information form and also
include, but not limited to:
- The opening of Exro's Calgary
manufacturing facility may experience delays in construction and/or
equipment installation, which may also result in delays for
obtaining necessary ISO and automotive certifications;
- Anticipated market demand and sales orders may differ based on
changes in customers' pipelines and/or product requirements;
- A new feature set for the patented Coil Driver™ technology
related to vehicle charging has yet to be deployed and may be
subject to development delays and risks related to the scaling of
EV charging infrastructure;
- A joint promotion of the technology by Linamar and Exro to the
market with the intention of commercializing the Coil Driver™
e-Axle into series production may not realize unless the validation
testing is complete and successful; and
- Potential delays in completion of testing and validation of
future Coil Driver™ prototypes.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this press
release.
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SOURCE Exro Technologies Inc.