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Another EV stock bites the dust

Environment, Market News, Renewable Energy, Transport
TSX:LEV
17 December 2024 12:09 (EST)
LionC and LionD zero emission school buses in California's Vacaville Unified School District

The Lion Electric Company

The Lion Electric Company (TSX:LEV), an EV stock focused on school buses and trucks, will initiate bankruptcy proceedings under the Companies’ Creditors Arrangement Act.

The decision follows Tuesday’s expiry of the covenant relief period under the company’s senior revolving credit agreement with National Bank of Canada, Bank of Montreal and Federation des Caisses Desjardins du Québec.

A loan agreement with Finalta Capital Fund and Caisse de dépôt et placement du Quebec that allowed the company more time to consider strategic alternatives has also matured.

Lion Electric is currently in default under the revolving credit agreement, the Finalta and Caise loan agreement, as well as other unspecified debt instruments.

If granted creditor protection, the company will restructure its assets and/or sell them to the highest bidder. In the meantime, the TSX and NYSE have halted trading in Lion Electric stock pending a suitability review.

Lion Electric joins U.S. start-up Fisker, British manufacturer Arrival and Canadian commercial EV supplier Vicinity Motor as a recent casualty in the EV space amid slowing demand.

About The Lion Electric Company

Lion Electric manufactures zero-emission trucks and school buses.

Lion Electric stock (TSX:LEV) last traded at C$0.34 per share. The stock has given back 86.09 per cent year-over-year.

Join the discussion: Find out what everybody’s saying about this EV stock on The Lion Electric Company Bullboard and check out the rest of Stockhouse’s stock forums and message boards.

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(Top photo of LionC and LionD zero-emission school buses in California’s Vacaville Unified School District: The Lion Electric Company)


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