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 Exro’s directors consulted with advisors and stakeholders, the Calgary-based company said in a statement. As a result, Exro’s US business, operated through various subsidiaries, is laying off non-essential staff. Exro has not responded to any of BetaKit’s requests for comment in recent weeks.
Exro’s stock price has been sitting at two cents per share, and hasn’t 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 “chief restructuring officer.” Exro’s stock price has been sitting at two cents per share since then and hasn’t 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.
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Founded in 2014, Exro aims to “bridge the performance-cost gap in e-mobility” through its coil drive, an adaptive EV traction inverter that prioritizes power and torque at different speeds. Exro’s 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 “certain limited components” of its business. In May, Exro struck a deal with an undisclosed “long-term institutional shareholder” to stay afloat with a $30 million USD ($42 million CAD) loan facility.
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.