The struggling electric vehicle technology company will cut non-essential staff in the US.
Struggling electric vehicle (EV) technology company Exro Technologies is closing its business in the United States (US) as it awaits delisting from the Toronto Stock Exchange (TSX).
The decision was made after Exro directors consulted with consultants and stakeholders, the Calgary-based company said in a statement. As a result, Exro's US business, operating through various subsidiaries, is laying off non-essential personnel. Exro has not responded to any of BetaKit's requests for comment in recent weeks.
Exro's share price is trading at two cents per share and has not traded above ten cents per share in six months.
The winding down follows a decision by Exro CEO Sue Oezdemir. resignation from his post last week and her move to the board after the firm cut 60 staff to save money. Meanwhile, the board has appointed Exro strategic adviser Chris Rankin as “chief restructuring officer.” Since then, Exro's share price has remained at two cents per share and has not traded above ten cents per share in six months.
Amid these challenges, Exro expects the TSX to consider delisting its shares from the exchange. The Investment Regulatory Authority of Canada halted trading of Exro shares on the TSX on Wednesday afternoon and had yet to resume trading as of 4:00 pm on September 18th. The company said it could not guarantee that it would continue to qualify for listing on the TSX.
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Founded in 2014, Exro aims to “bridge the performance and cost gap in e-mobility” with Coil Drive, an adaptive traction inverter for electric vehicles that prioritizes power and torque at different speeds. Exro's share price has been steadily declining over the years. The stock was trading above $6.50 per share at one point in 2021, but now has a 52-week trading high of 34 cents per share.
Following the suggested class action For Exro, the company initiated a strategic review process earlier this year designed to attract potential buyers to its intellectual property, technology and “certain limited components” of its business. In May Exro made a deal with an undisclosed “long-term institutional shareholder” to stay afloat with a US$30 million ($42 million CAD) line of credit.
In its second-quarter earnings report last month, the company said it had used one-third of the facility. Exro also reported revenue of just $2.9 million and a net loss of $81.7 million from continuing operations, primarily due to non-cash costs.
Image courtesy of Exro via LinkedIn.
