Latest news with #PierreWilkie
Cision Canada
23-05-2025
- Business
- Cision Canada
LION ELECTRIC ANNOUNCES COMPLETION OF REORGANIZATION TRANSACTION Français
MONTREAL, May 23, 2025 /CNW/ - The Lion Electric Company ("Lion" or the "Company"), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today the completion of the transactions (collectively, the "Transactions") contemplated by the previously announced definitive agreement (the "Definitive Agreement") dated May 15, 2025, entered into with a corporation newly incorporated for the sole purpose of completing the Transactions on behalf of a consortium comprised of Quebec based investors. The Definitive Agreement was entered into in connection with the Company's proceedings under the Companies' Creditor Arrangement Act (Canada) (the "CCAA Proceedings") and the related sale and investment solicitation process conducted under the supervision of the Superior Court of Quebec (Commercial Division) (the "Court") and Deloitte Restructuring Inc., in its capacity as Court-appointed monitor of the Company and its subsidiaries (in such capacity, the "Monitor"). The Definitive Agreement and the transaction contemplated thereby were approved by the Court on May 22, 2025. Pursuant to the Transactions: (i) all of the issued and outstanding common shares of the Company, as well as any and all options, warrants and other instruments exercisable into, or convertible or exchangeable for, common shares of the Company, were ultimately cancelled for no consideration, (ii) certain excluded assets and excluded liabilities of the Company and its subsidiaries were vested-out and transferred to entities newly-incorporated for such purposes (the "ResidualCos"), and (iii) the Purchaser subscribed for a new class of common shares in the capital of the Company, as a result of which, upon closing of the transactions contemplated by the Definitive Agreement, the Purchaser became the sole shareholder of the Company. Following the completion of the Transactions, the Company and certain of its subsidiaries emerged from the CCAA Proceedings and ceased to be applicants thereunder. Upon closing of the Transaction, the ResidualCos became applicants in the CCAA Proceedings. It is expected that the ResidualCos will be liquidated and eventually would-up by way of bankruptcy proceedings. On May 15, 2025, the Autorité des marchés financiers issued a partial revocation order in respect of the failure-to-file cease trade order issued on April 17, 2025 (the "FFCTO") in respect of the securities of the Company, solely for the purpose of completing the Transactions with the Purchaser. Following completion of the Transactions, the Company intends to apply to cease to be a reporting issuer order in all of the provinces and territories of Canada and for a full revocation of the FFCTO. Related Party Transaction Disclosure The Purchaser is a "related party" of the Company as a result of Mr. Pierre Wilkie, a director of the Company, forming part of the consortium, and, accordingly, the Transactions constituted a "related-party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). As a result of the Company being the subject of insolvency proceedings and the transactions contemplated by the Definitive Agreement not providing any recovery to holders of the Company's equity securities, and subject to the orders granted by the Court under the Reverse Vesting Order, the Company relied on the exemptions to the formal valuation and majority of the minority approval requirements provided under Section 5.5(f) and 5.7(d), respectively, of MI 61-101. 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. CAUTION REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the expectations that the Company cease to be a reporting issuer and that the FFCTO be fully revoked following completion of the transactions. 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, as well as 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.
Yahoo
23-05-2025
- Business
- Yahoo
LION ELECTRIC ANNOUNCES COMPLETION OF REORGANIZATION TRANSACTION
MONTREAL, May 23, 2025 /CNW/ - The Lion Electric Company ("Lion" or the "Company"), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced today the completion of the transactions (collectively, the "Transactions") contemplated by the previously announced definitive agreement (the "Definitive Agreement") dated May 15, 2025, entered into with a corporation newly incorporated for the sole purpose of completing the Transactions on behalf of a consortium comprised of Quebec based investors. The Definitive Agreement was entered into in connection with the Company's proceedings under the Companies' Creditor Arrangement Act (Canada) (the "CCAA Proceedings") and the related sale and investment solicitation process conducted under the supervision of the Superior Court of Quebec (Commercial Division) (the "Court") and Deloitte Restructuring Inc., in its capacity as Court-appointed monitor of the Company and its subsidiaries (in such capacity, the "Monitor"). The Definitive Agreement and the transaction contemplated thereby were approved by the Court on May 22, 2025. Pursuant to the Transactions: (i) all of the issued and outstanding common shares of the Company, as well as any and all options, warrants and other instruments exercisable into, or convertible or exchangeable for, common shares of the Company, were ultimately cancelled for no consideration, (ii) certain excluded assets and excluded liabilities of the Company and its subsidiaries were vested-out and transferred to entities newly-incorporated for such purposes (the "ResidualCos"), and (iii) the Purchaser subscribed for a new class of common shares in the capital of the Company, as a result of which, upon closing of the transactions contemplated by the Definitive Agreement, the Purchaser became the sole shareholder of the Company. Following the completion of the Transactions, the Company and certain of its subsidiaries emerged from the CCAA Proceedings and ceased to be applicants thereunder. Upon closing of the Transaction, the ResidualCos became applicants in the CCAA Proceedings. It is expected that the ResidualCos will be liquidated and eventually would-up by way of bankruptcy proceedings. On May 15, 2025, the Autorité des marchés financiers issued a partial revocation order in respect of the failure-to-file cease trade order issued on April 17, 2025 (the "FFCTO") in respect of the securities of the Company, solely for the purpose of completing the Transactions with the Purchaser. Following completion of the Transactions, the Company intends to apply to cease to be a reporting issuer order in all of the provinces and territories of Canada and for a full revocation of the FFCTO. Related Party Transaction Disclosure The Purchaser is a "related party" of the Company as a result of Mr. Pierre Wilkie, a director of the Company, forming part of the consortium, and, accordingly, the Transactions constituted a "related-party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). As a result of the Company being the subject of insolvency proceedings and the transactions contemplated by the Definitive Agreement not providing any recovery to holders of the Company's equity securities, and subject to the orders granted by the Court under the Reverse Vesting Order, the Company relied on the exemptions to the formal valuation and majority of the minority approval requirements provided under Section 5.5(f) and 5.7(d), respectively, of MI 61-101. 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. CAUTION REGARDING FORWARD-LOOKING STATEMENTS This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the expectations that the Company cease to be a reporting issuer and that the FFCTO be fully revoked following completion of the transactions. 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, as well as 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. SOURCE The Lion Electric Co. 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CBC
22-05-2025
- Business
- CBC
Quebec judge approves sale of Lion Electric
A Quebec Superior Court judge has approved the sale of vehicle-maker Lion Electric to a group of Quebec investors. Justice Michel Pinsonnault says the deal is the only option that ensures the struggling manufacturer can keep operating. The consortium of investors is led by Pierre Wilkie, a director of the electric-vehicle company, and Montreal real estate entrepreneur Vincent Chiara. Lion Electric will preserve its manufacturing plant in Saint-Jérôme, Que., where it made electric school buses and trucks, but hundreds of employees will be permanently laid off. The investors made a revised offer after the Quebec government announced last month it would not invest any more public money in the company.
CTV News
22-05-2025
- Business
- CTV News
Quebec judge approves sale of vehicle-maker Lion Electric to investor group
The Lion Electric Company's lithium-ion battery manufacturing facility in Mirabel, Que., is shown on Sept. 14, 2023. THE CANADIAN PRESS/Christinne Muschi A Quebec Superior Court judge has approved the sale of vehicle-maker Lion Electric to a group of Quebec investors. Justice Michel Pinsonnault says the deal is the only option that ensures the struggling manufacturer can keep operating. The consortium of investors is led by Pierre Wilkie, a director of the electric-vehicle company, and Montreal real estate entrepreneur Vincent Chiara. Lion Electric will preserve its manufacturing plant in St-Jérôme, Que., where it made electric school buses and trucks, but hundreds of employees will be permanently laid off. The investors made a revised offer after the Quebec government announced last month it would not invest any more public money in the company. Lion Electric entered creditor protection in December and has been seeking a buyer since then. This report by The Canadian Press was first published May 22, 2025. The Canadian Press
Canada Standard
20-05-2025
- Business
- Canada Standard
Lion Electric Finds New Investors, Li-Cycle Heads Toward Bankruptcy Protection
One iconic Canadian clean energy upstart got a new cash infusion last week while another one slid closer to bankruptcy, as St. Jerome, Quebec-based Lion Electric announced it had lined up new investors while Toronto-based Li-Cycle Holdings began dissolution proceedings in Canada and the United States. Li-Cycle's battery recycling operations in Germany and Switzerland will continue, Sustainable Biz reports, but the company will shut down its business in Asia as well as North America. On Thursday evening, Lion Electric said it had reached a "definitive agreement" with a group of Quebec investors for its electric bus manufacturing operation, the Globe and Mail writes. The new consortium includes serial entrepreneur and former Lion board member Pierre Wilkie and Montreal real estate magnate Vincent Chiara. The Superior Court of Quebec is scheduled to review the deal May 21. View our latest digests Earlier this month, Lion looked like it was on its way to liquidation when the Quebec government refused any further public funds after investing tens of millions of dollars in the company. Jean-Francois Nadon, a restructuring specialist with Deloitte, said Lion laid off all but 12 of its employees after the government announced its decision, was still able to pay its remaining staff, but could not come up with May 1 rent for all of its locations, totalling about $400,000. Now, the Wilkie consortium has "agreed to provide new capital, bolstered by the renewal of a provincial government subsidy program that offers incentives to buyers of electric buses," the Globe says. The new owners will take the company private, with a more modest business plan likely focusing on electric school bus manufacturing in St. Jerome. "Retail shareholders will probably be wiped out," the Globe writes, "while other investors could also lose the bulk of their holdings." In Toronto, meanwhile, Li-Cycle announced it would begin selling off its assets after filing for bankruptcy protection in Canada, Reuters reports. Its U.S. operations are also shutting down in New York State. In late April, the company announced it had suspended operations at several of its production facilities after an acquisition deal with mining behemoth Glencore PLC, its biggest secured creditor, fell through. "The company's Arizona and Alabama factories are halting operations to save cash, leaving about 85 employees furloughed, along with 32 at the firm's Toronto headquarters," The Logic reported at the time, and CEO Ajay Kochhar was expected step down as of May 15. Reuters says Li-Cycle "kept running into cost overruns and technical issues" after securing a financial lifeline for its Rochester, New York facility last November, in the form of a US$475-million loan from the U.S. Department of Energy. Now, Li-Cycle has accepted a $10.5-million debtor-in-possession deal with Glencore that will allow it to keep operating while it restructures, along with a $40-million stalking horse credit bid from the UK-based mining behemoth. Sustainable Biz traced the history of Glencore's partnership with Li-Cycle back to a $200-million investment in May 2022. But after that, construction at the Rochester plant that Kochhar had described as a "cornerstone asset" ran into cost overruns. After Glencore poured another $101 million into the company in March 2024, Li-Cycle cut 17% of its global work force and shifted its management model in search of efficiencies. "The problems faced by Li-Cycle are not unique to the company," Sustainable Biz wrote at the time. "The sector in Canada has hit major snags, including both Umicore and E-One Moli pausing plans for their battery factories and Ford withdrawing from its partnership with SK and EcoPro on a $1.2-billion battery plant in Becancour, Que." The news story said key factors have included "the challenges of building up a new industry, and an electric vehicle market that has not been growing at the rapid pace some companies expected," along with "the U.S. government that has acted on its opposition to clean energy projects and the shift to protectionism in global trade." Source: The Energy Mix
