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Exro LiveStream at EVS on 8/17/2022 at 12:OO PM EST
Calgary, Alberta (August 10, 2023) – Exro Technologies Inc. (TSX: EXRO, OTCQB: EXROF) (the “Company” or “Exro”), a leading clean technology company which has developed a new generation power control electronics that expand the capabilities of electric motors and batteries, announced today its financial results for the quarter ended June 30, 2023.
“The second quarter of 2023 demonstrated continued progress towards commercialization of our next generation technologies for electric vehicles and stationary energy storage”, said Exro CEO Sue Ozdemir. “We finished the quarter in a strong financial position, significantly expanded the expertise of our Board of Directors, and are in final preparations to start our production before the end of Q3. We have customers proceeding towards additional purchase orders and are digging in with our new leading global automaker partner on our power train innovation project – evidence that we are capitalizing on the efforts we have put in over the last three years.”
In January, Exro kicked-off its launch year with a Q1 Letter to Shareholders which outlined its strategic objectives for 2023. The purpose in setting these objectives was to continue transparency to investors while aligning with what management believes are demonstrable value drivers for the Company’s shareholders. A status update on these objectives is included below:
On June 30, 2023, Exro announced the election of three new Directors: Aleksandra Miziolek, Anita Ganti, and Frank Simpkins. On June 7, 2023 the Company announced that Rod Copes had moved from Interim Chairman to Chairman of the Board.
On May 23, 2023, Exro announced the closing of its bought deal financing, including the exercise in full of the Underwriters' (as defined below) over-allotment option, for a total of 15,525,000 common shares (the "Common Shares") sold at a price of $2.25 per Common Share for aggregate gross proceeds to the Company of $34,931,250 (the "Offering").
On May 15, 2023, Exro announced the signing of a definitive commercialization agreement with strategic partner, and global tier-1 automotive supplier, Linamar Corporation. The agreement follows successful testing and validation by Linamar of the Parties' co-developed integrated electric axle ("e-Axle") utilizing Exro's Coil Driver™ traction inverter and signals a commitment by the Parties to commercialize the product for multi-year series production. In Q4 2022, Exro supplied 800V Coil Driver™ inverter samples designed for integration into Linamar's e-Axle program. Following successful continued testing of the samples by Linamar through the first half of 2023, the Parties have progressed to a definitive agreement intended to commercialize the co-developed e-Axle into series production. The agreement is set for an initial five-year term with the Parties committing to milestones and commercial volume targets. In accordance with the agreement, by Q4 2023, the Parties intend to build a demonstration vehicle containing the e-Axle product to be utilized as a joint marketing asset for commercial vehicle customers.
On May 8, 2023, the Company announced Re:Build Manufacturing as Exro’s exclusive manufacturing partner for its Cell Driver™. The partnership with Re:Build Manufacturing provides Exro the ability to quickly scale to capture the significant opportunity in energy storage while removing all future capital expenditure and inventory working capital requirements associated with Cell Driver™ manufacturing from Exro’s balance sheet. The Company also announced new channel sales partnerships with Photovoltaics California, ProSolar, Shaw Solar, and High Point Electric, renewable energy and energy management integrators that cover customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada.
On July 13, 2023, Exro announced an innovation agreement with a leading Major Global Automaker, to mutually explore powertrain innovations in the Company’s electric passenger vehicles utilizing Exro’s advanced power electronics technology. The purpose of the collaboration is to determine the performance of Exro’s Coil Driver™ product for improving the continuous power and torque output of the powertrain in the OEM’s vehicles. Under the terms of the agreement, the Parties will work together to design a proof-of-concept Coil Driver™ plus motor system that would specifically fit into a defined electric machine housing. Under the agreement, the Parties anticipate completion of the proof-of-concept Coil Driver™ plus optimized motor design system by the end of Q4 2023, followed by delivery of functional prototypes to the OEM by the end of Q4 2024. The prototypes are then expected to enter a period of testing, including performance, durability, and reliability while determining next steps.
The Company saw revenue generated of $2,443,292 for the three months ended June 30, 2023 and $2,768,061 for the six months ended June 30, 2023, through the execution of engineering services agreements.
Exro saw an overall increase in operating costs for the six months ended June 30, 2023, which was driven largely by higher payroll and research and development costs compared to the same period in 2022, in addition to higher non-cash costs related to depreciation and share-based payments, offset by lower selling, general and administration costs. The Company continues to invest in talent to gear up for the start of production in 2023.
As of June 30, 2023, the Company had cash of $34,966,644 and amounts receivable of $338,302. The Company had accounts payable and accrued liabilities of $3,544,077.
As of August 10, 2023, there were 168,656,309 Common Shares issued and outstanding, and other securities convertible into Common Shares as summarized in the following table:
The condensed consolidated interim financial statements and Management’s Discussion and Analysis for the quarter ended June 30, 2023, released August 10, 2023, can be viewed at www.exro.com/investors or on SEDAR+ under Exro Technologies Inc. at www.sedarplus.ca.
Unless otherwise noted, all figures are in Canadian currency, Cdn.
Exro Technologies Inc. is a leading clean technology company that has developed new generation power control electronics that change how the world optimizes energy by expanding the capabilities of electric motors and batteries. The company’s innovative technologies serve to bridge the performance-cost gap in e-mobility (Coil Driver™) and stationary energy storage (Cell Driver™), and act to accelerate adoption towards a circular electrified economy by delivering more with less – minimum energy for maximum results.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at www.exro.com/investors
Visit us on social media @exrotech.
Sue Ozdemir, Chief Executive Officer
Investor inquiries: ir@exro.com
Chief Investment Officer, Darrell Bishop: dbishop@exro.com
Media inquiries: media@exro.com
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, 2022, and financial statements and related MD&A for the financial year ended December 31, 2022, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. 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.
Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.
