Québec Government, Investissement Québec, Fonds de solidarité FTQ and Fondaction Invest US$74 Million in Lion Electric
The investment will strengthen the company’s financial position and support its growth strategy
MONTRÉAL, July 20, 2023 /CNW/ – The Government of Québec, Investissement Québec, Fonds de solidarité FTQ and Fondaction are proud to announce an investment of approximately US$74 million in Québec flagship company Lion Electric Company (NYSE: LEV) (TSX: LEV). The proceeds from this investment will be used to strengthen the company’s financial position and allow it to pursue its growth strategy. This investment is being made in conjunction with an investment of C$90M from a group of subscribers led by Mach Group and the Mirella & Lino Saputo Foundation.
“This financing is a key milestone for Lion in that it provides us with flexibility to execute our growth plans. We are extremely thankful to the Government of Québec and Investissement Québec for their ongoing support, and to the new investors joining this round, including the Fonds de solidarité FTQ, Fondaction and a private consortium led by Mach Group,” said Marc Bédard, CEO-Founder of Lion. “The diversity of this group, which stems both from the public and private sectors, speaks to the importance of Lion in the EV landscape.”
“The US$35 million from the government will allow Lion Electric to continue its growth strategy. In addition to being a proud home-grown Québec business, it is a key actor in our battery industry in that it will transform our minerals into batteries for buses and trucks built here in Québec,” said Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development, and Minister Responsible for the Metropolis and the Montréal Region.
“Lion already offers vehicles designed from the ground up to be electric and intends to capitalize on this advantage to develop its brand and capture more market share. Thanks to Lion, Saint-Jérôme has become a hub for transportation electrification and sustainable mobility in Québec,” said Youri Chassin, MNA for Saint-Jérôme and Parliamentary Assistant to the Minister of Health.
“Investissement Québec is proud to be a long-time partner of Lion Electric,” said Bicha Ngo, Senior Executive Vice-President, Private Equity, at Investissement Québec. “Marc Bédard and his team play a leading role in Québec’s transportation electrification industry, and this round of financing, which includes US$15 million of Investissement Québec’s own funds, will solidify its production capacity and growth, while helping to position Québec as a North American and world leader in this sector that is so vital to our economy,” said Ms. Ngo.
“This investment of more than US$19 million in Lion Electric marks a new page in the company’s history. The Fonds de solidarité FTQ is proud to support a company that plays a major role in the electrification of transportation in Québec and elsewhere in the world. When a Québec company stands out in its area of expertise, it’s essential that we be there to back its growth. Our investment is also in line with the Fonds’ target to hold $12 billion in sustainable development assets by 2027,” explained Dany Pelletier, Executive Vice-President – Private Equity and Impact Investing at the Fonds de solidarité FTQ.
“For Fondaction, investing in Québec companies such as Lion Electric, a pioneer in the electrification of transportation, speaks to our commitment to building a future where sustainable mobility is the norm and to reducing GHGs in Québec,” said Claire Bisson, Deputy Chief Investment Officer, Impact and Sustainable Investments, at Fondaction.
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.
The Ministère de l’Économie et de l’Innovation du Québec supports the sustainable growth of Québec’s economy, contributes to the development of research and innovation, and ensures responsible governance of energy resources.
Investissement Québec’s mission is to play an active role in Québec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes through investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technical and technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists businesses with export activities.
The Fonds de solidarité FTQ is a source of pride in Québec, fulfilling its mission through a unique business model created 40 years ago. Since then, the Fonds has rallied Québec into action thanks to the retirement savings of 765,721 shareholders.
With net assets of $18.4 billion as at May 31, 2023, the Fonds supports more than 3,700 companies through venture and development capital investments based on the belief that impact is created as much by financial as social returns. To find out more, visit fondsftq.com or LinkedIn.
A trailblazer for over 25 years, Fondaction is the investment fund for those committed to the positive transformation of Quebec to make it a more productive, equitable, inclusive and greener economy. As a labour-sponsored fund, Fondaction represents tens of thousands of investors and hundreds of companies committed to the progress of Quebec. It manages a total of $3.34 billion in net assets invested in several hundred companies and in financial markets, prioritizing investments that generate positive economic, social and environmental benefits in addition to financial returns. The company participates in initiatives to maintain and create jobs, eliminate inequality and fight climate change. For more information, visit fondaction.com or its LinkedIn page.
SOURCE Fonds de solidarité FTQ
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