Canadian electrical car maker Lion Electrical Co. plans a $50 million inventory providing to strengthen its stability sheet and broaden factories.

The Montreal firm stated the growth will give attention to factories in Joliet, In poor health., and Mirabel, Quebec. Lion Electrical manufactures electrical buses and medium-size city cargo vans.

Lion Electrical stated in a Securities and Change submitting that it expects to web roughly $47 million from the providing after U.S. and Canadian underwriters B. Riley Securities and Nationwide Financial institution Monetary take their payment of $3.25 million. The underwriters are floating 19.7 million shares for $2.54 every.

If the providing on the New York and Toronto Inventory Exchanges sells out, each firms can have the choice to purchase a further 2.9 million shares at $2.54. Lion Electrical shares have been buying and selling at simply over $2 at noon on the NYSE on Wednesday.

The most important investor in Lion Electrical is monetary providers conglomerate Energy Company of Canada, which holds roughly 35 p.c of the corporate’s shares. The second largest shareholder is corporate founder and CEO Marc Bedard, who owns 14 p.c of the EV maker’s inventory.

Lion Electrical opened a $185 million battery manufacturing plant in Mirabel a yr in the past. The province of Quebec and the Canadian authorities invested $100 million within the plant’s development.

In Could 2021, Lion Electrical selected Joliet over websites in Michigan and Texas to construct a facility to make as much as 20,000 electrical buses and vans a yr.

The corporate stated it will spend $70 million over three years and produce over 800 jobs to Illinois, in trade for $7.9 million in Illinois state tax credit if it meets that aim.

Lion Electrical stated in November that its Joliet manufacturing facility has a backlog of two,408 autos, valued at $575 million, that has but to be delivered. That very same month, the Caisse de Depot et Placement du Québec, Canada’s second-largest pension fund, and Montreal’s Finalta Capital additionally prolonged a $22.5 million line of credit score to Lion Electrical.

Based in 2011, Lion Electrical has raised $222.4 million over 4 funding rounds since its Could 2021 preliminary public providing at $10 per share.

Lion Electrical’s prospects embrace Amazon, Ikea, and New Jersey’s faculty bus providers contractors Pupil Transportation of America and First Pupil. The latter is owned by Sweden’s EQT Companions, an actual property and infrastructure funding fund.

Lion Electrical’s market capitalization stands at $539.78 million, down 74 p.c from a yr in the past, in accordance with knowledge compiled by PitchBook.

Within the third quarter of 2022, Lion Electrical misplaced $17.2 million, citing $29 million in capital funding on its manufacturing amenities, together with $17 million spent on the Joliet plant.