Exro Technologies acquires SEA Electric to advance e-mobility solutions

In a significant development for the e-mobility sector, Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (“Exro”) announced the successful closure of its merger with SEA Electric Inc. (“SEA Electric”). This transaction, approved by Exro’s shareholders on April 4, 2024, sees Exro acquiring all issued and outstanding common and preferred shares of SEA Electric. As a result, SEA Electric has become an indirect wholly-owned subsidiary of Exro, with the merger introducing 146,453,200 common shares and 160,589,446 preferred shares into Exro’s share structure. This strategic move not only broadens Exro’s technology portfolio but also promises to accelerate its revenue growth and profitability.

The merger, heralded for its potential to reshape the landscape of sustainable transportation, aligns with both companies’ commitment to innovation in electric drivetrain systems. SEA Electric, recognized for its 100% electric propulsion technology, has a robust global presence, with its products being deployed across several countries, including the USA, Canada, Australia, and South Africa. This worldwide reach, combined with more than three million miles of service, underscores the company’s impact on the sector.

Following the merger, Exro Technologies Inc. will continue to trade on the Toronto Stock Exchange under the ticker symbol “EXRO”. The integration of SEA Electric into Exro’s operations is expected to bolster the company’s offerings, combining SEA’s electric drivetrain technology with Exro’s Coil Driver™ technology to deliver superior performance and cost-efficiency in commercial vehicles. This synergistic combination is anticipated to generate over C$200 million in revenues for 2024, with Exro and SEA targeting the delivery of more than 1,000 propulsion technology systems to major OEMs.

Significant to the merger’s success, Tony Fairweather (CEO of SEA Electric) and John MacLeod (director of SEA Electric) have joined the board of directors of the combined entity. This strategic addition aims to leverage their extensive experience to guide the merged company towards achieving its ambitious goals.

Concurrent with the merger, Exro converted 31,600,000 subscription receipts into common shares, with net proceeds from the offering amounting to approximately $27.85 million. These funds are earmarked for supporting the business plan of the combined company, encompassing production, capital expenditures, and working capital requirements.

This merger marks a pivotal moment in the e-mobility sector, signaling a move towards more sustainable and efficient transportation solutions. As Exro and SEA Electric navigate the path forward, their combined expertise and innovative technologies are set to play a crucial role in advancing the electrification of the automotive industry.

The merger between Exro Technologies Inc. and SEA Electric represents a significant step forward in the push for sustainable transportation solutions. By combining their strengths, the two companies are well-positioned to lead in the innovation and deployment of electric drivetrain systems, potentially setting new industry standards. This strategic alliance not only underscores the importance of technological synergy in the e-mobility space but also highlights the role of corporate mergers in driving forward the global sustainability agenda.