Struggling electric vehicle (EV) technology firm Exro Technologies is shutting down its business in the United States (US) as it anticipates a delisting review on the Toronto Stock Exchange (TSX).
The decision was made after Exroâs directors consulted with advisors and stakeholders, the Calgary-based company said in a statement. As a result, Exroâs US business, operated through various subsidiaries, is laying off non-essential staff. Exro has not responded to any of BetaKitâs requests for comment in recent weeks.
Exroâs stock price has been sitting at two cents per share, and hasnât traded much higher than ten cents per share in six months.
The wind-down follows Exro CEO Sue Ozdemir’s resignation from her post last week and her shift to the board of directors after the firm cut 60 employees to save cash. In the meantime, the board appointed Exro strategic advisor Chris Rankin as âchief restructuring officer.â Exroâs stock price has been sitting at two cents per share since then and hasnât traded much higher than ten cents per share in six months.
Amid those struggles, Exro anticipates the TSX will review delisting its stock from the exchange. The Canadian Investment Regulators Organization halted the trade of Exro stock on the TSX on Wednesday afternoon and has yet to resume trading as of 4 p.m. on Sept. 18. The company said it could not guarantee its continued qualification for listing on the TSX.
RELATED: Exro Technologies CEO resigns as stock price plummets
Founded in 2014, Exro aims to âbridge the performance-cost gap in e-mobilityâ through its coil drive, an adaptive EV traction inverter that prioritizes power and torque at different speeds. Exroâs stock price has been steadily declining for years. It once traded at more than $6.50 per share in 2021, but its 52-week trading high is now 34 cents per share.
Following a proposed class-action lawsuit against Exro, the company initiated a strategic review process earlier this year meant to solicit potential buyers for its intellectual property, technology, and âcertain limited componentsâ of its business. In May, Exro struck a deal with an undisclosed âlong-term institutional shareholderâ to stay afloat with a $30 million USD ($42 million CAD) loan facility.Â
In its second-quarter earnings last month, the company reported that it had used one-third of that facility. Exro also reported only $2.9 million in revenue and an $81.7 million net loss from continued operations, mostly in non-cash costs.
Feature image courtesy Exro via LinkedIn.