MONTREAL, May 3, 2022
/CNW Telbec/ - The Lion Electric Company (NYSE: LEV) (TSX: LEV)
("Lion" or the "Company"), a leading manufacturer of all-electric
medium and heavy-duty urban vehicles, today announced its financial
and operating results for the first quarter of fiscal year 2022,
which ended on March 31, 2022. Lion reports its results in US
dollars and in accordance with International Financial Reporting
Standards ("IFRS").
Q1 2022 FINANCIAL
HIGHLIGHTS
- Delivery of 84 vehicles, an increase of 60 vehicles, as
compared to the 24 delivered in the same period last year.
- Revenue of $22.6 million, up
$16.4 million as compared to
$6.2 million in Q1 2021.
- Gross loss of $0.9 million, as
compared to a gross loss of $1.8
million in Q1 2021.
- Net earnings of $2.1 million, as
compared to a net loss of $16.1
million in Q1 2021. Net earnings for Q1 2022 include a
$21.5 million gain related to
non-cash decrease in the fair value of share warrant obligations
and a $3.8 million charge related to
non-cash share-based compensation, compared to a $5.2 million charge related to non-cash
share-based compensation in Q1 2021.
- Adjusted EBITDA1 of negative $11.3 million, as compared to negative
$5.9 million in Q1 2021, after mainly
adjusting for certain non-cash items such as change in fair value
of share warrant obligations and share-based compensation.
- Capital expenditures, which included expenditures related to
the Joliet Facility and the Lion Campus, amounted to $34.9 million, up $33.8
million, as compared to $1.1
million in Q1 2021.
- Acquisition of intangible assets, which mainly consist of
R&D activities, amounted to $15.0
million, up $8.5 million, as
compared to $6.5 million in Q1
2021.
- As of March 31, 2022, Lion had
$155.5 million in cash, and access to
a committed revolving credit facility in the maximum principal
amount of $200 million, as well as
available support from the Canadian federal and Quebec governments of up to approximately
C$100 million (amounting to
approximately C$50 million each) in
connection with the Lion Campus.
______________________________________
|
1 Adjusted
EBITDA is a non-IFRS financial measure. See "Non-IFRS Measures and
Other Performance Metrics" section of this press
release.
|
BUSINESS UPDATES
- More than 600 vehicles on the road, with over 10 million miles
driven.
- Vehicle order book2 of 2,422 all-electric medium-
and heavy-duty urban vehicles as of May 3,
2022, consisting of 286 trucks and 2,136 buses, representing
a combined total order value of approximately $600 million based on management's
estimates.
- LionEnergy order book2 of 241 charging stations and
related services as of May 3, 2022,
representing a combined total order value of approximately
$3.0 million.
- 12 Experience Centers in operation in the United States and Canada.
- Tenant improvement work as well as the installation of critical
production and other equipment advancing at the new leased 900,000
sq-ft U.S. manufacturing facility in Joliet, Illinois (the "Joliet Facility").
Vehicle production expected to begin in the second half of
2022.
- Construction and development work for the battery manufacturing
plant is advancing, including the installation of the prototype
module production line at JR Automation's facilities in
Troy, Michigan, the production of
the first prototype pack, and the completion of the steel structure
for the battery plant building in Mirabel. Production of battery packs and
modules is expected to begin in the second half of 2022.
- Several new key partnerships announced with truck upfitters to
provide new fully electrified refrigerated, dry freight and
aluminum stake body options for the Lion6 zero-emission urban
truck. The new partnerships include equipment upfit options from
industry leaders Morgan Truck Body, Thermo
King, Knapheide and CM Truck Beds.
- Launch of a new lightweight, aerodynamic, 100% electric
heavy-duty truck on the Lion6 chassis, together with Transit Truck
Bodies that is suited for last-mile urban delivery, that was
developed under an upfitter partnership model.
- As of May 3, 2022, Lion had
approximately 1,100 employees, of which over 300 were in its
Engineering and R&D departments.
"We are pleased with our Q1 performance. Despite the ongoing
challenges in the supply chain environment, we continued to
experience improvements and achieved a record number of quarterly
vehicle deliveries. We also sustained momentum in vehicle
manufacturing and we expect that cadence of production, and
therefore of deliveries, should gradually improve over the rest of
the coming year," commented Marc
Bedard, CEO – Founder of Lion. "As we celebrate our first
year as a public company, we continue to build the foundations of
our long-term growth and are excited to see that the movement
towards electrification of transports continues to gain strong
momentum, as demonstrated by unprecedented government funding
packages announced in the U.S. and Canada over the past few months," concluded
Marc Bedard.
____________________________
|
2 See
"Non-IFRS Measures and Other Performance Metrics" section of this
press release.
|
SELECT EXPLANATIONS ON RESULTS OF
OPERATIONS FOR THE FIRST QUARTER OF FISCAL YEAR 2022
Revenue
For the three months ended March 31,
2022, revenue amounted to $22.6
million, an increase of $16.4
million compared to three months ended March 31, 2021. The increase in revenue was
primarily due to an increase in vehicle sales volume of 60 units,
from 24 units (18 school buses and 6 trucks; 22 vehicles in
Canada and 2 vehicles in the U.S.)
for the three months ended March 31,
2021, to 84 units (72 school buses and 12 trucks; 80
vehicles in Canada and 4 vehicles
in the U.S.) for the three months ended March 31, 2022. Revenues for the three months
ended March 31, 2022 were impacted by
continuing global supply chain challenges, which required the
Company to delay the final assembly of certain vehicles and
resulted in increased inventory levels. In addition, the school bus
unit mix for the three months ended March
31, 2022, as well as discounted pricing on certain trucks
that were sold in the context of new product launches, had a
negative impact on average selling prices per unit. Revenues
generated from sales of LionEnergy and aftermarket parts during the
three months ended March 31, 2022
were also slightly lower than during the three months ended
December 31, 2021.
Cost of Sales
For the three months ended March 31,
2022, cost of sales amounted to $23.6
million, representing an increase of $15.5 million, compared to the three months ended
March 31, 2021. The increase was
primarily due to increased sales volumes and higher production
levels, increased fixed manufacturing costs related to the ramp-up
of production capacity for future quarters, and the impact of
continuing global supply chain challenges.
Gross Loss
For the three months ended March 31,
2022, gross loss decreased by $0.9
million to negative $0.9
million, compared to negative $1.8
million for the three months ended March 31, 2021. The decrease included the
positive gross profit impact of increased sales volumes, mainly
offset by the impact of increased fixed manufacturing costs related
to the ramp-up of production capacity for future quarters and the
impact of continuing global supply chain challenges.
Administrative Expenses
For the three months ended March 31,
2022, administrative expenses (which included $2.8 million of non-cash share-based
compensation) increased by $4.7
million from $6.3 million for
the three months ended March 31,
2021, to $11.0 million. The
increase was mainly due to an increase in expenses reflecting
Lion's status as a public company, and the expansion of Lion's head
office capabilities in anticipation of an expected increase in
business activities. Administrative expenses for the three months
ended March 31, 2022, also includes
an expense of $0.9 million relating
to the procurement of director and officer ("D&O") insurance on
terms reflecting the public-company status of Lion, which is
materially higher than the expense incurred in prior periods when
the Company was a private company.
Selling Expenses
For the three months ended March
31, 2022, selling expenses (which included $1.0 million of non-cash share-based
compensation) increased by $1.0
million, from $4.4 million for
the three months ended March 31,
2021, to $5.4 million. The
increase was primarily due to Lion expanding its sales force in
anticipation of the ramp-up of production capacity, and an increase
in expenses as a result of the opening and operations of new
Experience Centers.
Finance Costs
For the three months ended March 31,
2022, finance costs decreased by $2.7
million, from $3.9 million for
the three months ended March 31,
2021, to $1.2 million. The
decrease was driven primarily by lower interest expense on long
term debts, the non-recurrence of interest expense on convertible
debt instruments and accretion expense on retractable common shares
which were repaid on May 6, 2021,
partially offset by an increase in interest costs related to lease
liabilities.
Foreign Exchange Loss (Gain)
Foreign exchange gains and losses relate primarily to the
revaluation of net monetary assets denominated in foreign
currencies to the functional currencies of the related Lion
entities. Foreign exchange loss for the three months ended
March 31, 2022, was $0.9 million compared to a gain of $0.2 million for the three months ended
March 31, 2021, largely as a result
of a strengthening of the Canadian dollar relative to the US dollar
during the three months ended March 31,
2022, as compared to the three months ended March 31, 2021.
Change in fair value of share warrant
obligations
Change in fair value of share warrant obligations resulted in a
gain of $21.5 million for the three
months ended March 31, 2022, compared
to a gain of $0.1 million for the
three months ended March 31, 2021,
and was related to the warrants issued to a specified customer in
July 2020 and the public and private
warrants issued as part of the closing of the Business Combination
on May 6, 2021. The gain for the
three months ended March 31, 2022
results mainly from the decrease in the market price of Lion equity
as compared to the previous valuations.
Net Earnings (Loss)
For the three months ended March 31,
2022, net earnings were $2.1
million, as compared to a net loss of $16.1 million for the three months ended
March 31, 2021. The increase in net
earnings (loss) for the three months ended March 31, 2022 compared to the three months ended
March 31, 2021 was largely due to the
gain related to the fair value of share warrant obligations,
partially offset by higher administrative and selling expenses.
COMPANY HEADCOUNT
As of May 3, 2022, Lion had approximately 1,100 employees,
of which over 300 were in its Engineering and R&D
departments.
CONFERENCE CALL
A conference call and webcast will be held on May 4, 2022, at 8:30 a.m.
(Eastern Time) to discuss the results.
To participate in the conference call, dial (226) 828-7575 or
(833) 950-0062 (toll free). An investor presentation and a live
webcast of the conference call will also be available at
www.thelionelectric.com under the "Events and Presentations" page
of the "Investors" section. An archive of the event will be
available for a period of time shortly after the conference
call.
FINANCIAL REPORT
This release should be read together with our 2022 first quarter
financial report, including the unaudited condensed interim
consolidated financial statements of the Company as at and for the
quarter ended March 31, 2022 and
related management's discussion and analysis ("MD&A"), which
will be filed by the Company with applicable Canadian securities
regulatory authorities and with the U.S. Securities and Exchange
Commission and which will be available on our website at
www.thelionelectric.com.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at
March 31, 2022 and December 31, 2021
(Unaudited)
|
Mar 31,
2022
|
|
Dec 31, 2021
|
|
$
|
|
$
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash
|
155,459,640
|
|
241,702,030
|
Accounts
receivable
|
38,959,413
|
|
37,899,085
|
Inventories
|
144,746,941
|
|
115,978,979
|
Prepaid
expenses and other current assets
|
4,438,507
|
|
4,647,163
|
Current
assets
|
343,604,501
|
|
400,227,257
|
Non-current
|
|
|
|
Other
non-current assets
|
845,365
|
|
793,298
|
Property,
plant and equipment
|
68,104,890
|
|
32,668,158
|
Right-of-use assets
|
59,255,209
|
|
60,902,362
|
Intangible
assets
|
97,533,855
|
|
81,899,830
|
Contract
asset
|
14,318,972
|
|
14,113,415
|
Non-current
assets
|
240,058,291
|
|
190,377,063
|
Total
assets
|
583,662,792
|
|
590,604,320
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
|
|
|
|
Trade and
other payables
|
45,777,582
|
|
40,409,565
|
Current
portion of long-term debt and other debts
|
12,936,186
|
|
13,015,584
|
Current
portion of lease liabilities
|
4,994,798
|
|
4,691,344
|
Current
liabilities
|
63,708,566
|
|
58,116,493
|
Non-current
|
|
|
|
Long-term
debt and other debts
|
49,265
|
|
62,086
|
Lease
liabilities
|
56,006,402
|
|
57,517,973
|
Share
warrant obligations
|
86,070,645
|
|
106,225,934
|
Non-current
liabilities
|
142,126,312
|
|
163,805,993
|
Total
liabilities
|
205,834,878
|
|
221,922,486
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share
capital
|
418,709,160
|
|
418,709,160
|
Contributed
surplus
|
126,432,354
|
|
122,637,796
|
Deficit
|
(167,653,289)
|
|
(169,755,726)
|
Cumulative translation
adjustment
|
339,689
|
|
(2,909,396)
|
Total shareholders'
equity
|
377,827,914
|
|
368,681,834
|
Total shareholders'
equity and liabilities
|
583,662,792
|
|
590,604,320
|
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE
EARNINGS (LOSS)
For the three months ended March 31, 2022 and
2021
(Unaudited)
|
|
|
Three months
ended
|
|
Mar 31,
2022
|
|
Mar 31,
2021
|
|
$
|
|
$
|
Revenue
|
22,646,793
|
|
6,225,478
|
Cost of
sales
|
23,558,565
|
|
8,032,301
|
Gross
loss
|
(911,772)
|
|
(1,806,823)
|
|
|
|
|
Administrative
expenses
|
10,977,409
|
|
6,269,969
|
Selling
expenses
|
5,375,502
|
|
4,383,579
|
Operating
loss
|
(17,264,683)
|
|
(12,460,371)
|
|
|
|
|
Finance
costs
|
1,178,408
|
|
3,907,390
|
Foreign exchange loss
(gain)
|
910,642
|
|
(178,653)
|
Change in fair value of
share warrant obligations
|
(21,456,170)
|
|
(75,245)
|
Net income
(loss)
|
2,102,437
|
|
(16,113,863)
|
Other comprehensive
income (loss)
|
|
|
|
Item that
will be subsequently reclassified to net earnings (loss)
|
|
|
|
Foreign currency translation adjustment
|
3,249,085
|
|
(1,302,467)
|
Comprehensive
earnings (loss) for the period
|
5,351,522
|
|
(17,416,330)
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
Basic earnings (loss)
per share
|
0.01
|
|
(0.15)
|
Diluted earnings (loss)
per share
|
0.01
|
|
(0.15)
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three
months ended March 31, 2022 and
2021
(Unaudited)
|
Three months
ended
|
|
Mar 31,
2022
|
|
Mar 31, 2021
|
|
$
|
|
$
|
OPERATING
ACTIVITIES
|
|
|
|
Net earnings (loss) for
the period
|
2,102,437
|
|
(16,113,863)
|
Non-cash
items:
|
|
|
|
Depreciation and amortization
|
1,983,254
|
|
983,814
|
Share-based compensation
|
3,794,558
|
|
5,205,352
|
Accretion
expense on common shares, retractable
|
—
|
|
1,616,013
|
Accretion
and revaluation expense on balance of purchase price payable
related to the acquisition of the
dealership rights
|
56,336
|
|
153,120
|
Accretion
expense on convertible debt instruments
|
—
|
|
797,214
|
Change in
fair value of share warrant obligations
|
(21,456,170)
|
|
(75,245)
|
Unrealized
foreign exchange gain
|
(207,744)
|
|
(35,926)
|
Net change in non-cash
working capital items
|
(20,745,672)
|
|
(2,594,854)
|
Cash flows used in
operating activities
|
(34,473,001)
|
|
(10,064,375)
|
INVESTING
ACTIVITIES
|
|
|
|
Acquisition of
property, plant and equipment(1)
|
(35,794,350)
|
|
(1,111,899)
|
Acquisition of
intangible assets(1)
|
(14,782,510)
|
|
(6,450,184)
|
Government assistance
related to intangible assets
|
—
|
|
456,190
|
Cash flows used in
investing activities
|
(50,576,860)
|
|
(7,105,893)
|
FINANCING
ACTIVITIES
|
|
|
|
Net change in credit
facilities
|
—
|
|
4,977,316
|
Repayment of loans on
research and development tax
credits and subsidies
receivable
|
—
|
|
(2,745,712)
|
Increase in long-term
debt
|
—
|
|
15,775,473
|
Repayment of long-term
debt and other debts
|
(303,778)
|
|
(370,026)
|
Payment of lease
liabilities
|
(1,216,817)
|
|
(447,724)
|
Cash flows (used in)
from financing activities
|
(1,520,595)
|
|
17,189,327
|
Effect of exchange rate
changes on cash held in foreign currency
|
328,066
|
|
(62,053)
|
Net decrease in
cash
|
(86,242,390)
|
|
(42,994)
|
Cash (bank overdraft),
beginning of period
|
241,702,030
|
|
(91,076)
|
Cash (bank overdraft),
end of period
|
155,459,640
|
|
(134,070)
|
Other information on
cash flows related to operating activities:
|
|
|
|
Interest
paid
|
349,986
|
|
1,050,469
|
Interest
paid under lease liabilities
|
772,087
|
|
79,471
|
|
|
(1)
|
For the three months
ending March 31, 2022, the amount excludes $761,293 of payables
related to the acquisition of intangible assets and $7,922,816
related to the acquisition of property, plant and equipment as at
March 31, 2022 and includes $554,310 and $8,797,575 of payables,
respectively, as at December 31, 2021. There were no outstanding
payables related to the acquisition of intangible assets and
property, plant and equipment as at March 31, 2021 and December 31,
2020.
|
NON-IFRS MEASURES AND OTHER
PERFORMANCE METRICS
This press release makes reference to Adjusted EBITDA, which is
a non-IFRS financial measure, as well as other performance metrics,
including the Company's order book, which are defined below. These
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of the Company's results of operations from management's
perspective. Accordingly, they should not be considered in
isolation nor as a substitute for analysis of the Company's
financial information reported under IFRS.
"Adjusted EBITDA" is defined as net earnings (loss) before
finance costs, income tax expense or benefit, and depreciation and
amortization, adjusted for share-based compensation, changes in
fair value of share warrant obligations, foreign exchange (gain)
loss and transaction and other non-recurring expenses. Adjusted
EBITDA is intended as a supplemental measure of performance that is
neither required by, nor presented in accordance with, IFRS. Lion
believes that the use of Adjusted EBITDA provides an additional
tool for investors to use in evaluating ongoing operating results
and trends and in comparing Lion's financial measures with those of
comparable companies, which may present similar non-IFRS financial
measures to investors. However, readers should be aware that when
evaluating Adjusted EBITDA, Lion may incur future expenses similar
to those excluded when calculating Adjusted EBITDA. In addition,
Lion's presentation of these measures should not be construed as an
inference that Lion's future results will be unaffected by unusual
or non-recurring items. Lion's computation of Adjusted EBITDA may
not be comparable to other similarly entitled measures computed by
other companies, because all companies may not calculate Adjusted
EBITDA in the same fashion. Readers should review the
reconciliation of net earnings (loss), the most directly comparable
IFRS financial measure, to Adjusted EBITDA presented by the Company
under section 13.0 of the Company's MD&A for the three months
ended March 31, 2022 entitled
"Results of Operations - Reconciliation of Adjusted EBITDA."
This press release also makes reference to the Company's "order
book" with respect to vehicles and charging stations. The Company's
order book, expressed as a number of units or the amount of sales
expected to be recognized in the future in respect of such number
of units, is determined by management based on purchase orders that
have been signed, orders that have been formally confirmed by
clients or products in respect of which formal joint applications
for governmental subsidies or economic incentives have been made by
the applicable clients and the Company. The Company's order book
refers to products that have not yet been delivered but which are
reasonably expected by management to be delivered within a time
period that can be reasonably established and includes, in the case
of charging stations, services that have not been completed but
which are reasonably expected by management to be completed in
connection with the delivery of the product. When the Company's
order book is expressed as an amount of sales, such amount has been
determined by management based on the current specifications or
requirements of the applicable order, assumes no changes to such
specifications or requirements and, in cases where the pricing of a
product or service may vary in the future, represents management's
reasonable estimate of the prospective pricing as of the time such
estimate is reported. The order book is intended as a supplemental
measure of performance that is neither required by, nor presented
in accordance with, IFRS or any other applicable securities
legislation, and is neither disclosed in nor derived from the
financial statements of the Company. Lion believes that the
disclosure of its order book provides an additional tool for
investors to use in evaluating the Company's performance and
trends. Lion's computation of its order book may not be comparable
to other similarly entitled measures computed by other companies,
because all companies may not calculate their order book, order
backlog, or order intake in the same fashion. In addition, Lion's
presentation of such measure should not be construed as a
representation by Lion that all of the vehicles and charging
stations included in its order book will translate into actual
sales. A portion of the vehicles or charging stations included in
the Company's order book may be cancellable in certain
circumstances within a certain period. In addition, the conversion
of the Company's order book into actual deliveries and sales is
subject to a number of risks. For instance, a customer may default
on a purchase order that has become binding, and the Company may
not be able to convert orders included in its order books into
sales. The conversion of the Company's order book into actual
deliveries and sales may also be impacted by changes in government
subsidies and economic incentives. For example, the conditional
purchase order from Student Transportation of Canada ("STC"), a subsidiary of Student
Transportation of America ("STA"), announced in October 2021 for 1,000 all-electric LionC school
buses, which would represent the Company's largest single purchase
order to date, is dependent upon the satisfactory grant of
non-repayable contributions to STC under Infrastructure Canada's
Zero-Emission Transit Fund ("ZETF"), in respect of which the formal
application filed by STC constitutes the first application made by
a customer of Lion under the ZETF program. As a result, the
Company's realization of its order book could be affected by
variables beyond its control and may not be entirely realized. See
section 3.0 of the Company's MD&A for the three months ended
March 31, 2022 entitled "Caution
Regarding Forward-Looking Statements" and section 10.0 of the
Company's MD&A for the three months ended March 31, 2022 entitled "Order Book."
Because of these limitations, Adjusted EBITDA and order book
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with IFRS. Lion
compensates for these limitations by relying primarily on Lion's
IFRS results and using Adjusted EBITDA and order book on a
supplemental basis. Readers should not rely on any single financial
measure to evaluate Lion's business.
RECONCILIATION OF ADJUSTED
EBITDA
The following table reconciles net earnings (loss) to Adjusted
EBITDA for the three months ended March 31,
2022 and 2021:
|
Unaudited
|
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
(in
thousands)
|
|
|
|
|
Revenue
|
$22,647
|
|
$6,225
|
|
|
|
|
Net earnings
(loss)
|
$2,102
|
|
($16,114)
|
Finance
costs
|
1,178
|
|
3,907
|
Depreciation and
amortization
|
1,983
|
|
984
|
Share-based
compensation(1)
|
3,795
|
|
5,205
|
Change in fair value of
share warrant obligations(2)
|
(21,456)
|
|
(75)
|
Foreign exchange
(gain) loss(3)
|
911
|
|
(179)
|
Transaction and other
non-recurring expenses(4)
|
169
|
|
410
|
Adjusted
EBITDA
|
($11,318)
|
|
($5,861)
|
|
|
(1)
|
Represents non-cash
expenses recognized in connection with the issuance and revaluation
to fair value of stock options issued to participants under Lion's
stock option plan as described in note 9 to the unaudited condensed
interim consolidated financial statements as at and for the three
months ended March 31, 2022 and 2021.
|
(2)
|
Represents non-cash
change in the fair value of the share warrant obligations as
described in note 8 to the unaudited condensed interim consolidated
financial statements as at and for the three months ended March 31,
2022 and 2021.
|
(3)
|
Represents non-cash
losses (gains) relating to foreign exchange translation.
|
(4)
|
Represents professional
fees related to financing transactions and other non-recurring
professional fees.
|
2022 ANNUAL MEETING OF
SHAREHOLDERS
Lion will be holding its 2022 Annual Meeting of Shareholders
(the "Meeting") as a completely virtual meeting via live webcast on
May 6, 2022, at 11:00 a.m. (Eastern Time). The decision to hold a
virtual meeting only was made in an effort to contain the spread of
the coronavirus (COVID-19) and to prioritize and support the
well-being of Lion's shareholders, employees and other Meeting
attendees.
All shareholders, regardless of their geographic location, will
have an equal opportunity to participate at the virtual Meeting at
https://web.lumiagm.com/442208210. To access the online Meeting
platform, participants will need an Internet-connected device, such
as laptops, computers, tablets or cellphones.
The Company's management information circular and notice of
annual meeting of shareholders relating to the Meeting are
available on Lion's website at www.thelionelectric.com under the
"Events and Presentations" page of the "Investors" section, and
have been filed on SEDAR at www.sedar.com and EDGAR at
www.sec.gov.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer
of zero-emission vehicles. The company creates, designs
and manufactures all-electric class 5 to class 8 commercial
urban trucks and all-electric buses and minibuses for the school,
paratransit and mass transit segments. Lion is a North American
leader in electric transportation and designs, builds and assembles
many of its vehicles' components, including chassis, battery packs,
truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion
vehicles have unique features that are specifically adapted to its
users and their everyday needs. Lion believes that transitioning to
all-electric vehicles will lead to major improvements in our
society, environment and overall quality of life. Lion shares are
traded on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol LEV.
CAUTION REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Any
statements contained in this press release that are not statements
of historical fact, including statements about Lion's beliefs and
expectations, are forward-looking statements and should be
evaluated as such.
Forward-looking statements may be identified by the use of words
such as "believe," "may," "will," "continue," "anticipate,"
"intend," "expect," "should," "would," "could," "plan," "project,"
"potential," "seem," "seek," "future," "target" or other similar
expressions and any other statements that predict or indicate
future events or trends or that are not statements of historical
matters, although not all forward-looking statements contain such
identifying words. These forward-looking statements include
statements regarding the Company's order book and the Company's
ability to convert it into actual sales, the Company's long-term
strategy and future growth, the Company's battery plant and
innovation center project in Quebec and its U.S. manufacturing facility,
and the expected launch of new models of electric vehicles. Such
forward-looking statements are based on a number of estimates and
assumptions that Lion believes are reasonable when made, including
that Lion will be able to retain and hire key personnel and
maintain relationships with customers, suppliers and other business
partners, that Lion will continue to operate its business in the
normal course, that Lion will be able to implement its growth
strategy, that Lion will be able to successfully and timely
complete the construction of its U.S. manufacturing facility and
its Quebec battery plant and
innovation center, that Lion will not suffer any further supply
chain challenges or any material disruption in the supply of raw
materials on competitive terms, that Lion will be able to maintain
its competitive position, that Lion will continue to improve its
operational, financial and other internal controls and systems to
manage its growth and size, that its results of operations and
financial condition will not be adversely affected, that Lion will
be able to benefit, either directly or indirectly (including
through its clients), from government subsidies and economic
incentives in the future and that Lion will be able to secure
additional funding through equity or debt financing on terms
acceptable to Lion when required in the future. Such estimates and
assumptions are made by Lion in light of the experience of
management and their perception of historical trends, current
conditions and expected future developments, as well as other
factors believed to be appropriate and reasonable in the
circumstances. However, there can be no assurance that such
estimates and assumptions will prove to be correct.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Lion
believes that these risks and uncertainties include the following:
any adverse changes in U.S. or Canadian general economic, business,
market, financial, political or legal conditions, including as
consequences of the global COVID-19 pandemic and the emergence of
COVID-19 variants, as well as varying vaccination rates amongst
different countries; any adverse effects of the Russia-Ukraine war, which is increasingly affecting
economic and global financial markets and exacerbating ongoing
economic challenges, including issues such as rising inflation and
global supply-chain disruption; any inability to successfully and
economically manufacture and distribute its vehicles at scale and
meet its customers' business needs; any inability to ramp-up the
production of Lion's products and meet project construction and
other project timelines; any inability to reduce total cost of
ownership of electric vehicles sold by Lion over time; the reliance
on key management and any inability to attract and/or retain key
personnel; any inability to execute the Company's growth strategy;
any unfavorable fluctuations and volatility in the price and
availability of raw materials included in key components used to
manufacture Lion's products; the reliance on key suppliers and any
inability to maintain an uninterrupted supply of raw materials;
labor shortages which may in the form of employee turnover,
departures, and demands for higher wages which result in the
Company having to operate at reduced capacity, lower production and
deliveries, delayed growth plans, and could pose additional
challenges related to employee compensation; any inability by Lion
to meet user expectations related to, or other difficulties in
providing, charging solutions to its customers; any inability to
maintain the Company's competitive position; any inability to
reduce its costs of supply over time; any inability to maintain and
enhance the Company's reputation and brand; any significant product
repair and/or replacement due to product warranty claims or product
recalls; any failure of information technology systems or any
cybersecurity and data privacy breaches or incidents; any event or
circumstance resulting in the Company's inability to convert its
order book into actual sales, including the reduction, elimination
or discriminatory application of government subsidies and economic
incentives or the reduced need for such subsidies; any inability to
secure adequate insurance coverage or a potential increase in
insurance costs; natural disasters, epidemic or pandemic outbreaks,
boycotts and geo-political events such as civil unrest and acts of
terrorism, the current military conflict between Russia and Ukraine or similar disruptions; and the
outcome of any legal proceedings that may be instituted against the
Company from time to time.
These and other risks and uncertainties related to the
businesses of Lion are described in greater detail in section 23.0
entitled "Risk Factors" of the Company's annual MD&A for the
fiscal year 2021. Many of these risks are beyond Lion's
management's ability to control or predict. All forward-looking
statements included in this press release are expressly qualified
in their entirety by the cautionary statements contained herein and
the risk factors included in the Company's annual MD&A for the
fiscal year 2021 and in other documents filed with the applicable
Canadian regulatory securities authorities and the Securities and
Exchange Commission.
Because of these risks, uncertainties and assumptions, readers
should not place undue reliance on these forward-looking
statements. Furthermore, forward-looking statements speak only as
of the date they are made. Except as required under applicable
securities laws, Lion undertakes no obligation, and expressly
disclaims any duty, to update, revise or review any forward-looking
information, whether as a result of new information, future events
or otherwise.
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SOURCE Lion Electric