Source: shutterstock.com/Nixx Photography
Lion Electric (NYSE:LEV) stock is sinking 12% after the electric vehicle (EV) maker announced it would sell 19.69 million additional units for $2.54 per unit. Each unit includes one share of LEV stock and a warrant to purchase an additional share. The company expects to raise up to $50 million from the sale of the units.
More About the LEV Stock Deal
Yesterday after the market closed, Lion stated it would market additional units.
This morning before the market opened, the EV maker disclosed nearly 20 million units would be marketed for $2.54 per share. The automaker’s stock closed yesterday at $2.67. Lion stated it would use the funds obtained from the sale of the units to boost its financial position and “pursue its growth strategy.” Lion noted it would utilize a portion of the funds to build its plants in Illinois and Quebec.
The EV maker reported that Quebec-based Power Sustainable Capital had expressed its willingness to buy about $25 million of Lion’s units. Power Sustainable describes itself as “a multi-platform alternative asset manager investing in sustainable strategies.” The CEO of Power Sustainable is Olivier Desmarais, who is the chairman of the Canada China Business Council.
What Is Lion Electric?
Specializing in building zero-emission school buses, urban trucks and buses for transporting passengers in urban areas, Lion generated $57.7 million of revenue in 2021. In the 12 months that ended in September, its top line came in at $116 million while it generated an operating loss of $75.2 million.
Before trading began today, the shares had sunk 21% in the last month and 73% so far in 2022. As of this morning, the market capitalization of LEV stock is $447 million.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.