Bus maker Lion Electric mulls sale of the company amid cash woes

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MONTREAL — Lion Electric Co. is opening the door to a possible sale of the company as the electric bus maker struggles to staunch an ongoing cash bleed.

In a statement Monday, the Quebec-based manufacturer said it is considering various sources of financing as well as alternatives that"include a sale of the business."

Lion Electric had previously suggested asset sales were an option as it scrambled to cut costs and find fresh funding, but had made no mention of selling the firm outright. It says various lenders that include National Bank and the Bank of Montreal have agreed to a two-week extension of a grace period to Nov. 30 on a credit agreement.

Lion Electric has announced losses topping $131 million over the past four quarters and at least 520 layoffs so far this year, or more than 40 per cent of its workforce. The company's shares fell five per cent to 46 cents by midday Monday, far below highs that topped $24 in mid-2021.The Canadian Press

 

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