- Signed a non-binding letter of intent with LAND for the
District motorcycle with the Coil Driverᵀᴹ order volume of up to
2,000 units after the unit is validated by LAND.
- Entered into the expanded strategic collaboration agreement and
made the strategic investment of US$ 5
million to SEA Electric providing Exro with the platform to
demonstrate and accelerate development of the BCS.
- Secured a 36,966 square foot facility in Calgary which will include production lines,
product showroom and office spaces. The facility is targeted to
open for late Q4 2021, with automotive certified production by end
of 2022.
CALGARY, AB, May 11, 2021 /CNW/ - Exro Technologies Inc.
(TSXV: 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 powertrains, is pleased
to announce its financial results for the quarter-ended
March 31, 2021.
"Our current focus is attracting top engineering talent and
building a robust pipeline of versatile partners across different
segments to validate our technology. We are also ramping up the
design and construction of the new 36,966 square foot facility in
south Calgary that will be capable
of producing automotive compliant Coil Driverᵀᴹ units in late
2022," said Sue Ozdemir, Chief
Executive Officer of Exro.
"During the first quarter of 2021, LAND Electric Motorcycles
("LAND") signed a letter of intent to purchase up to 2,000 units,
which was a milestone for us on our path to revenue," commented
Josh Sobil, Chief Commercial Officer
of Exro. "We signed an expanded strategic collaboration agreement
and made a US$ 5 million investment
with SEA Electric Pty Ltd. ("SEA Electric") to showcase the Battery
Control System ("BCS") while expanding on the Coil Driverᵀᴹ
commercialization scope. In April, we entered into a supply
agreement with Vicinity Motor Corp. ("Vicinity") to deploy Exro
enhanced electric buses. Vicinity will test and validate the
Coil Driverᵀᴹ powertrain integration with the intent of
implementing it in future serial production batches of the electric
bus product line."
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 January 22, 2021, Exro engaged
VSA Capital Ltd. ("VSA Capital") as European financial advisor and
corporate broker. VSA Capital, is an independent financial
advisor and corporate brokerage firm based in London, UK. VSA Capital will be paid an annual
fee of £40,000 and will run for a minimum term of 12 months after
which this agreement may be terminated by either VSA or Exro giving
the other not less than three months' notice. Exro and VSA Capital
act at arm's length, and VSA Capital has no present interest,
directly or indirectly, in Exro or its securities. The fee paid by
Exro to VSA Capital is for services only. The agreement is subject
to approval of the TSX Venture Exchange (the "TSXV").
Q1 2021
FINANCIAL HIGHLIGHTS
- Comprehensive loss of $6,676,520
(Q1 2020 – $1,525,182).
- General and Administration expense increased by 474,572 to
$919,972
- Payroll and consulting fees increased by $507,253 to $1,225,830
- Research and development increased by $1,525,270 to $1,701,152
- Share based payments expense increased by $2,206,722 to $2,351,405
The main drivers for the overall costs increase are due to
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 71% due to testing and validation
of several projects to achieve its goals for commercialization.
Exro is still spending a considerable amount of time and effort to
recruit top talents and to increase the awareness of its
technologies and progress.
FIRST QUARTER OPERATING HIGHLIGHTS
On February 4, 2021, Exro
announced that it signed an agreement with LAND to produce up to
2000 units of the Coil Driverᵀᴹ in early 2022 subject to
successful on road testing. Exro and LAND have agreed to cooperate
to optimize the powertrain for the District motorcycle with the
Coil Driverᵀᴹ. This integration is expected to improve performance
for the District motorcycle and enable a new powertrain system
solution in the emerging lightweight electric motorcycles
industry.
On February 9, 2021, the Company
announced that it expanded its strategic partnership with SEA
Electric to accelerate development of Exro's BCS. The
agreement expands on the initial scope to commercialize the Exro
Coil Driverᵀᴹ in SEA's electric trucks with volume production
targets of 400 trucks minimum by the end of 2022. There are
technical risks that this timeline may not be achieved. The Company
and SEA Electric will co-demonstrate the Exro-enhanced electric
fleet trucks in the North American market by the second half of
2021. As part of the agreement, Exro invested US $5 million into SEA Electric by subscribing for
124,380 Series A Preferred Shares (the "Shares") at a price of US
$40.1995 per Share. The Shares are
convertible into common shares of SEA at the option of Exro and
automatically covert to common shares under certain conditions,
including SEA completing a going public transaction.
On March 16, 2021, the Company
entered into a ten-year lease commencing on August 1, 2021 for a 36,966 square foot warehouse
facility and office in Calgary.
Pursuant to this new lease agreement, the Company is obligated to
pay basic monthly rent of $49,288 for
the first 5 year-term plus operating costs and $50,828 for the following five-year term ending
July 31, 2031 plus operating costs.
The lease provides for eight months of free rent commencing
August 1, 2021 till March 31, 2022 on 100% of the building and an
additional 12 months of rent on 25% of the building commencing
April 1, 2022 till March 31, 2023.
After the quarter-end, 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. Vicinity will test and validate the Coil Driverᵀᴹ
powertrain integration with the intent of implementing it in future
serial production batches of the electric bus product line.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2021, the Company
had cash of $39,174,239 and accounts
receivable of $201,029, which
primarily consist of GST refund. The Company has accounts payable
and accrued liabilities of $1,925,152.
RESULTS OF OPERATIONS AND SELECTED FINANCIAL DATA
Year
ended
|
Revenue
|
Net and
comprehensive loss
|
Basic and
diluted
loss per common
share
|
Weighted
average
number of common
shares
|
March 31,
2021
|
-
|
(6,676,520)
|
(0.06)
|
116,343,905
|
March 31,
2020
|
-
|
(1,525,182)
|
(0.02)
|
76,314,552
|
OUTSTANDING SHARE DATA
As of May 11, 2021, there were 120,268,656 Common
Shares issued and outstanding, and other securities convertible
into Common Shares as summarized in the following table:
|
Number Outstanding
as
of May 11, 2021
|
Number Outstanding
as
of March 31, 2021
|
Common Shares issued
and outstanding
|
120,268,656
|
82,880,249
|
Options
|
10,642,085
|
9,432,500
|
Warrants
|
1,860,561
|
2,430,831
|
As at March 31, 2021
and May 11, 2021 there were no shares held in escrow. (December 31,
2020 – nil)
|
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 powertrains by enabling two separate
torque profiles within a given motor. A major advancement in the
sector, dynamic motor configuration enables efficiency optimization
for each operating mode resulting in reduction of energy
consumption. The controller automatically selects the appropriate
configuration in real time so that power and efficiency are
intelligently optimized.
For more information visit our website at www.exro.com.
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/exro-technologies-announces-first-quarter-2021-financial-results-301289282.html
SOURCE Exro Technologies Inc.