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Lion was warmly welcomed in Toronto

Lion was warmly welcomed in Toronto

Shares of Lion electric truck and bus maker jumped on Friday in its first session on the Toronto Stock Exchange.

The title of the company Saint-Jérôme, which also trades on Wall Street, was valued 10%, to $ 21.59, on the Canadian Stock Exchange. The starting price was $ 19.67, which is equivalent to the Canadian dollar of the North Genesis stock price converted the day before in New York.

Lion announced last fall that it intended to list its shares on the stock exchange by merging with Northern Genesis, a special purpose acquisition company whose shares were already trading in New York. The operation with Northern Genesis brings about half a billion US to Lion, a sum that will be used primarily to fund the expansion of production capacity.

In his initial research report on Lion, Jonathan Lamers from BMO recommends the purchase.

This expert suggests that execution, competition and prospective revision of forecasts are the main risks to watch out for.

Going to the Midwest

Lion will set up its 900,000 sq., American electric vehicle manufacturing plant in the suburbs of Chicago, Illinois.2.

Production should start in the second half of next year with a capacity of up to 20,000 vehicles per year.

Other states, especially in the Midwest, were observed before they chose Illinois. “But Illinois really stood out,” says Lion CEO and co – founder Marc Bédard.

“We were looking for a central place. The site is near Chicago and the highways go to several places in the United States there. We wanted electrification policies. We’ve seen a lot going on in Illinois right now. We also wanted a well-qualified and qualified workforce, as we will have an on-site engineering team, ”explains Marc Bédard.

Lion management fell in love with the site. Marc Bédard had already said that an American factory could be installed in an already built building abandoned by an automobile manufacturer. “Except the factories we saw were 50 years old,” he says. “There was a lot of time and money to invest. But here, the site we found in Illinois has the best of both worlds. It is a new building whose construction is approximately 70% already complete. »

This site had a distribution center that companies such as UPS, Amazon or FedEx could rent. “When we saw it, we said: It is ours. It’s great, because we can adapt it to our sauce. We will be able to do something unusual with it and very quickly as we are going to take possession of it in the coming months. »

Marc Bédard notes that Lion in Illinois has signed a 15 – year lease with options that could include an additional 20 years.

battery factory

Lion plans to open a battery factory in Quebec soon. Regarding the location of this plant, Marc Bédard argues that the file is not yet complete. Saint-Jérôme and Mirabel want to be chosen. A final decision is imminent and Marc Bédard believes an announcement should be made by the end of the month. “This is a file that requires a lot of analysis. »

Marc Bédard points out that it is not just an economic and ecological decision.

The current Lion assembly plant in Saint-Jérôme has a production capacity of 2,500 vehicles per year.

Lion estimates the size of the target electric market in North America at US100 billion for city trucks and US10 billion for buses. The major truck fleet operators such as UPS, FedEx, Pepsi, etc., are all in Lion’s croshairs, which in particular announced an agreement with the Amazon giant last winter.

Founded 13 years ago, Lion suffered a net loss of US97 million in 2020. Revenue reached US30 million in 2019 and US23 million last year. However, Revenue could rise to more than US $ 3.6 billion in 2024, according to management projections.

To date, most of Lion’s revenue has been generated from the sale of electric school buses. In the future, however, Lion expects a “significant” portion of its revenue to come from its electric city trucks.

The company now has almost 400 vehicles on the road and hopes to deliver 650 vehicles this year.


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