CALGARY,
AB, Nov. 6, 2024 /PRNewswire/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the
"Company" or "Exro"), a leading clean technology
provider specializing in proprietary motor control and complete
electric propulsion systems for e-mobility, today announced the
release of a shareholder letter. The letter provides details on the
upcoming Q3 earnings release, scheduled for November 13, 2024, as well as an Analyst Day
event to be hosted at the Company's U.S. headquarters in
Mesa, Arizona, on November 14, 2024. The letter also addresses
recent stock volatility and reaffirms Exro's commitment to
advancing its strategic initiatives and driving long-term growth in
the electrification sector.
Dear Exro Shareholders,
Despite recent headwinds, Exro's proprietary
intellectual property continues to position us for strong growth.
Our patented and proven technology is designed to make the
transition to electrification more cost-effective while improving
performance. The acquisition of SEA Electric was a strategic move
to accelerate the integration of our Coil Driver® technology into
OEM platforms, a development expected to drive market adoption and
revenue growth. We are pleased to report that this integration is
progressing as planned and will be showcased at our upcoming
Analyst Day.
In light of recent market volatility, we are
committed to continuing to enhancing our investor relations
strategy. Shareholders can look forward to the following
updates:
- Enhanced Investor Relations Support: We are committed to
continuously improving our investor relations efforts with more
frequent updates and more transparent communication channels to
ensure investors continue to have timely access to information and
a comprehensive understanding of Exro's progress. In this light,
Exro recently engaged leading North American investor relations
firm, The Blueshirt Group, to manage and support Exro's IR
strategy. The Blueshirt team is comprised of Wall Street and
industry veterans who have extensive relationships and established
credibility with analysts, bankers, institutional investors, VCs
and the media through years of strong execution.
- Q3 Results Announcement on November
13, 2024: We will announce our Q3 results after the
market closes. Management will host a conference call for analysts
following the release of Q3 results with details to be provided in
advance on our website.
- Analyst Day on November 14,
2024: We are hosting our inaugural Analyst Day in
Mesa, Arizona. This
invitation-only event will showcase our technology with on-site
demos of vehicles. Attendees will have the opportunity to speak
with customers, industry experts and Exro executives to better
understand the disruptive nature of our technology. Additionally,
we will provide an update on our business strategy and path to
profitability. Video recordings from the event will be posted to
our investor relations website following the event.
Our resilience is rooted in our strong
partnerships with blue-chip OEMs and a commitment to quality and
innovation. Following our merger with SEA Electric, we have made
significant strides in addressing key operational challenges,
including:
- Supply Chain Management: We successfully navigated
many inventory and parts shortages that were highlighted in our Q2
results, ensuring minimal disruption to our operations.
- Operational Efficiencies: We remain focused on cost
reductions and right-sizing the business to meet OEM demand. To
that end, we've achieved substantial annualized cost savings
through headcount reductions, facility closures, and proactive
resource management, positioning Exro on a clear path to
profitability.
- Financial Stability: We recently raised additional
capital to support our working capital needs as we scale SEA-Drive®
production volumes for two OEMs, which will drive both growth and
profitability.
In recent weeks, our share price has faced
significant downward pressure, with a decline of over 50% since
late September. We understand the concerns this has raised among
our shareholders and want to reassure you of our ongoing commitment
to achieving long-term, profitable growth.
We believe the recent pressure on our stock is
primarily attributable to the expiration of the lock-up agreement
related to our merger with SEA Electric. Specifically, SEA
shareholders received Exro shares with a six-month lock-up period,
which expired in early October. This event, combined with weak
broader market conditions for electric vehicle-related stocks,
resulted in trading volumes more than three times the average daily
levels, which contributed to the downward pressure on the share
price.
While we are currently navigating short-term
market challenges, we remain focused on operational excellence,
revenue growth, and profitability through scale. The long-term
market outlook remains positive as demand for electrified
commercial vehicles continues to grow. In 2023, commercial truck
sales in the U.S. and Europe
tripled compared to the previous year, and this growth trend is
expected to continue. OEMs are increasingly seeking innovative
technology solutions to bridge the performance-cost gap. With our
strong OEM partnerships and industry-leading technology, Exro is
well-positioned to become the market leader in this space.
We deeply appreciate the continued support of our
shareholders and look forward to updating you on our progress in
the coming weeks. We are confident that we are building a better
future, where sustainability and innovation work hand in hand.
Thank you for your ongoing trust and support.
Sue Ozdemir
CEO, Exro
Rod Copes
Board Chair, Exro
ABOUT EXRO TECHNOLOGIES INC.
Exro Technologies Inc., now expanded through the
strategic acquisition of SEA Electric, is a leading clean
technology company that has developed new generation power control
electronics. Its innovative suite of solutions, including the Exro
Coil Driver®, Exro Cell Driver®, and SEA-Drive®, expand the
capabilities of electric motors and batteries and offer OEMs a
comprehensive e-propulsion solution with unmatched performance and
efficiency. Exro is reshaping global energy consumption,
accelerating adoption towards a circular electrified economy by
delivering more with less – minimum energy for maximum
results.
For more information visit our website
at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors
Visit us on social media @exrotech.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking
statements and forward-looking information (together,
"forward-looking statements") within the meaning of applicable
securities laws. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified using terminology such
as "plans", "expects", "estimates", "intends", "anticipates",
"believes" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might", "will
be taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties and other factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's filings with
Canadian securities regulators, which could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the assumptions and factors used
in preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is qualified in its entirety by
cautionary statements and risk factor disclosure contained in
filings made by the Company with the Canadian securities
regulators, including the Company's annual information form for the
financial year ended December 31,
2023, and financial statements and related MD&A for the
financial year ended December 31,
2023, filed with the securities regulatory authorities in
certain provinces of Canada and
available at www.sedar.com. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The Company does not intend, and does not
assume any obligation, to update this forward-looking information
except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the
Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this press release.
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SOURCE Exro Technologies Inc.