- The Company continued to increase its capital assets in the
first quarter of 2022 through phase one of its world-class
automated inverter facility, including the construction of the
Company's cleanroom.
- Exro Vehicle Systems opened their office in Dexter, Michigan on January 1, 2022 further positioning the services
division to execute and provide end-to-end elective vehicle (EV)
design and engineering services.
- Exro received the Gold Edison Award for Best New Product in
manufacturing, logistics and transportation at the 2022 Edison
Awards.
- The Company entered into a sales and services agreement with
its commercial partner Vicinity Motor Corp. for the sale of up to
2,500 units, including a Coil Driver™ and electric motor.
- The Company entered into an additional sales agreement with its
commercial partner ev Transportation Services Inc to supply an
initial quantity of 1,000 units of its 100V Coil Drive System
beginning in 2023
CALGARY,
AB, May 12, 2022 /CNW/ - Exro Technologies
Inc. (TSX: 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, announced today its financial results for the three
months ended March 31, 2022.
Activity in the quarter focused on the construction of the
company's world-class, automotive certified ready manufacturing
center in Calgary, Alberta. The
Company has invested $6.8 million of
capital in the cleanroom and manufacturing equipment to date,
representing the Company's continued focus on in-house
manufacturing. Exro remains on track for the commissioning of phase
one of the manufacturing facility by the end of 2022.
"As we continue to advance development, and recently
transitioned commercialization projects with partners, all of our
resources are running at full capacity," said Sue Ozdemir. "In addition to our two recently
announced purchase orders and sales agreements, Exro was awarded an
Edison Gold Award for Best New
Product in manufacturing, logistics and transportation – another
validation of our Coil Driver™ technology and the impact we can
provide to drive adoption rates in the transition to
electrification in mobility. I am proud of the accomplishments of
our team thus far in 2022, and excited to continue to deliver on
the targets we have set ahead."
On February 4, 2022, the Company
announced the closing of a bought deal offering (the "Offering").
Pursuant to the Offering, Exro sold 12,722,450 units (the "Units")
at a price of $1.60 per Unit (the
"Issue Price") for aggregate gross proceeds of $20,355,920. The total number of Units sold in
the offering includes 1,659,450 Units issued pursuant to the
exercise of an overallotment option granted to the Underwriters,
which was fully exercised by the Underwriters. Each Unit consists
of one common share in the capital of the Company, and one half of
one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant is exercisable for one common share at a
price of $2.00 per common share until
February 4, 2025. The Units were
offered by way of an amended and restated prospectus supplement
dated February 1, 2022, to the
Company's base shelf prospectus dated December 16, 2021, filed with the securities
regulators in each of the provinces of Canada, copies of which are available under
the Company's profile on SEDAR at www.sedar.com.
Subsequent to the quarter, on May 3,
2022 Exro announced it has signed an agreement for the sale
of up to 2,500 units with electric bus manufacturer Vicinity Motor
Corp. The agreement commences with a first lot purchase order of
100 units. Over the 36-month term of the agreement, Exro will plan
to deliver an increasing volume of its Coil Drive System for up to
2,500 units that include both a Coil Driver™ and an electric motor,
which were designed to meet Vicinity's specific requirements to
deploy clean, affordable and accessible electric buses across
North America. Exro will also
support the development of Vicinity's electric motor chassis for
Class 5/6 bus configurations and provide engineering services to
enable AC fast-charging using Coil Driver™. Upon complete
execution, Vicinity Lighting™ buses optimized with Coil Driver™ are
expected to be on the road in the near term and accessible for
private and public transit use in several forward-looking cities in
North America.
Prior to announcing the sales agreement with Vicinity, Exro was
presented with the Gold Edison Award for Best new Product in
manufacturing, logistics and transportation at the 2022 Edison
Awards Gala in Fort Meyers, Florida for its Coil Driver™.
On May 11, 2022 Exro announced it
has signed an agreement with ev Transportation Services, Inc.
("evTS") to supply an initial quantity of 1,000 units of its 100V
Coil Drive System beginning in 2023 for use in evTS model year 2023
FireFly vehicles. The agreement commences with an initial
purchase order of 1,000 Coil Drive System units, which consists of
a Coil Driver™ controller and an optimized electric motor. Over the
36-month term of the agreement, Exro will plan to deliver an
increasing volume of its Coil Drive System with production
beginning in 2023. With this agreement, evTS FireFly ESVs optimized
with Exro's Coil Driver™ will be used to execute essential services
in leading sustainability-minded cities around the world.
FIRST QUARTER 2022 FINANCIAL
HIGHLIGHTS
For the three months ended March 31,
2022
- Comprehensive loss of $10,172,003
(2021 – $6,676,520).
- Selling, general and administration expense increased by
$1,734,026 to $2,653,998
- Payroll and consulting fees increased by $1,671,430 to $2,897,260
- Research and development increased by $582,086 to $2,283,238
- Share based payments expense decreased by $1,247,253 to $1,104,152
The increase in comprehensive loss was driven by higher overall
spend as the Company increases its headcount compared to the
previous year. The Company continues to transition from a
proof-of-concept stage to a commercialization stage and preparation
for the production of Coil Driver™. As the Company continues to
progress, additional resources are required in order to meet both
the short and long-term goals linked to commercialization. Research
and development expenses increased by 34% for the three months
ended March 31, 2022, as the Company
continues to deliver against its strategic and commercial
partnership projects. Exro continues to recruit top talents and
increase the awareness of its technologies and progress.
LIQUIDITY AND CAPITAL
RESOURCES
As of March 31, 2022, the Company had cash of $23,759,268 and amounts receivable of
$131,134, which primarily consist of
GST refund. The Company had accounts payable and accrued
liabilities of $1,894,048.
RESULTS OF OPERATIONS AND SELECTED
FINANCIAL DATA
For the twelve
months ended
|
Other
comprehensive
loss
|
Basic and diluted
loss
per common share
|
Weighted average
number of common
shares
|
March 31,
2022
|
$ (10,172,003)
|
$ (0.08)
|
131,280,873
|
March 31,
2021
|
$
(6,676,520)
|
$ (0.06)
|
116,343,905
|
OUTSTANDING SHARE DATA
As of May 12, 2022, there were 133,842,724 Common Shares
issued and outstanding, and other securities convertible into
Common Shares as summarized in the following table:
|
Number outstanding
as of
|
Number outstanding
as of
|
|
May 12,
2022
|
March 31,
2022
|
Common Shares issued
and outstanding
|
133,842,724
|
133,842,724
|
Options
|
11,394,566
|
10,802,116
|
Warrants
|
8,845,883
|
8,845,883
|
ADDITIONAL INFORMATION
The audited consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2021, March
29, 2022, 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 electric
powertrains by enabling intelligent optimization for efficient
energy consumption. Exro is working with many partners from all
over the world to bring their technology to the electric mobility
industries and beyond.
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.
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.
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, 2021, and financial
statements and related MD&A for the financial year ended
December 31, 2021, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. 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.
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SOURCE Exro Technologies Inc.