MONTREAL, Jan. 3, 2025
/CNW/ - The Lion Electric Company (NYSE: LEV) (TSX: LEV)
("Lion" or the "Company") announced today a reduction of its
workforce through temporary layoffs of approximately 150 employees,
in both Canada and the United States, across all departments
within the organization. Following this workforce reduction, Lion
will have approximately 160 employees who will mainly focus on
assisting Lion's customers with the maintenance and servicing of
school buses and trucks.
The Company was required to implement this workforce reduction
in the context of its ongoing proceedings under the Companies'
Creditors Arrangement Act ("CCAA") as per the terms and
conditions of the debtor-in-possession (DIP) financing provided by
the lenders under the Company's senior revolving credit agreement
in connection with such proceedings, in order to fund the sale and
investment solicitation process ("SISP") being conducted in the
context of the proceedings as well as the Company's operations
during the restructuring process.
As previously announced, the Superior Court of Quebec (Commercial Division) issued on
December 18, 2024 an initial order
granting the Company and its subsidiaries protection under the CCAA
as well as an order approving a SISP in respect of the Company's
business or assets. Documents relating to the Company's
restructuring process are available on the monitor's website
at https://www.insolvencies.deloitte.ca/en-ca/pages/Lion-Electric-Company.aspx.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer of zero-emission
vehicles, including all electric school buses. 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" within the meaning of applicable
securities laws and within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"), including statements about Lion's
beliefs and expectations and other statements that are not
statements of historical facts. 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 may contain such identifying words. The forward-looking
statements contained in this press release are based on a number of
estimates and assumptions that Lion believes are reasonable when
made. 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. For additional information on
estimates, assumptions, risks and uncertainties underlying certain
of the forward-looking statements made in this press release,
please consult section 23.0 entitled "Risk Factors" of the
Company's annual management's discussion and analysis of financial
condition and results of operations (MD&A) for the fiscal year
2023 and in other documents filed with the applicable Canadian
regulatory securities authorities and the Securities and Exchange
Commission, including the Company's interim MD&As. Many of
these risks are beyond Lion's management's ability to control or
predict. All forward-looking statements attributable to Lion or
persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements contained and risk factors
identified in the Company's annual MD&A for the fiscal year
2023 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.
See section 2.0 of the Company's interim management's discussion
and analysis for the three and nine months ended September 30, 2024 (the "Interim MD&A"),
entitled "Basis of Presentation," section 15.0 of the Company's
Interim MD&A entitled "Liquidity and Capital Resources," and
note 2 of the Company's unaudited condensed interim consolidated
financial statements as at September 30,
2024 and for the three and nine months ended September 30, 2024 and 2023 which indicate the
existence of material uncertainty that may cast significant doubt
on the Company's ability to continue as a going concern.
View original
content:https://www.prnewswire.com/news-releases/lion-electric-announces-further-workforce-reduction-in-the-context-of-ongoing-ccaa-proceedings-302342038.html
SOURCE The Lion Electric Co.
