Press Release: LION ELECTRIC ANNOUNCES THIRD QUARTER 2024 RESULTS

directly or indirectly (including through applications made by the Company and/or its clients), on a timely basis, from governmental programs, subsidies and incentives, that Lion will not incur any material obligations with respect to product warranty claims or product recalls, and that Lion will be able to secure additional funding through equity or debt financing on terms acceptable to Lion and in the amounts needed when required in the future. Such estimates and assumptions are made by Lion in light of the experience of management and their perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Lion believes that these risks and uncertainties include the following:

   -- the Company's ability to continue as a going concern, which will be 
      dependent upon, among other things, the Company's ability to raise 
      additional funds and/or negotiate further amendments or concessions or 
      waivers with the holders of its debt instruments (including in each case 
      in connection with the expiry of the covenant relief period and upcoming 
      maturity of the Finalta-CDPQ Loan Agreement); 
 
   -- any inability to generate sufficient cash flows and/or raise additional 
      funds to meet its capital requirements and meet its obligations as they 
      become due (including upcoming interest payment obligations under, and 
      repayment at maturity of, certain of its debt instruments), in each case 
      when due and in the amounts needed; 
 
   -- any inability to remain in compliance with financial ratios under, and 
      the terms and conditions of, its debt instruments (including during or 
      after the covenant relief period); 
 
   -- any inability to negotiate further amendments or concessions or waivers 
      to agreements with the holders of its debt instruments when needed in the 
      future; 
 
   -- any inability to generate sufficient cash flows and/or raise additional 
      funds to pursue its growth strategy, when and in the amounts needed; 
 
   -- any adverse changes in U.S. or Canadian general economic, business, 
      market, financial, political or legal conditions, including as a 
      consequence of the ongoing uncertainties relating to inflation and 
      interest rates; 
 
   -- the increased risks relating to the Company's order book resulting from 
      the uncertainty relating to the Company's financial position and cash 
      flows; 
 
   -- any unavailability, reduction, discriminatory application, delay in 
      processing or elimination of governmental programs, subsidies or 
      incentives due to policy changes, government regulations or decisions or 
      otherwise; 
 
   -- any inability to ramp-up the production of Lion's products; 
 
   -- any inability to meet the expectations of the Company's customers in 
      terms of products, specifications, and services; 
 
   -- any inability to successfully and economically manufacture and distribute 
      its vehicles at scale; 
 
   -- any inability to execute the Company's growth strategy; 
 
   -- any escalation, deterioration and adverse effects of current military 
      conflicts, which may affect economic and global financial markets and 
      exacerbate ongoing economic challenges; 
 
   -- any unfavorable fluctuations and volatility in the availability or price 
      of raw materials included in components used to manufacture the Company's 
      products, including battery cells, modules and packs; 
 
   -- the reliance on key suppliers and any inability to maintain an 
      uninterrupted supply of raw materials; 
 
   -- any inability to reduce total cost of ownership of electric vehicles sold 
      by the Company over time; 
 
   -- the reliance on key management and any inability to attract and/or retain 
      key personnel; 
 
   -- labor shortages (including as a result of employee departures, turnover, 
      demands for higher wages and unionization of employees) which may force 
      the Company to operate at reduced capacity, to lower its production and 
      delivery rates or lower its growth plans, and could pose additional 
      challenges related to employee compensation; 
 
   -- any inability to maintain the Company's competitive position; 
 
   -- any inability to reduce the Company's costs of supply over time; 
 
   -- any inability to maintain and enhance the Company's reputation and brand; 
 
   -- any significant product repair and/or replacement due to product warranty 
      claims or product recalls; 
 
   -- any failure of information technology systems or any cybersecurity and 
      data privacy breaches or incidents; 
 
   -- any inability to secure adequate insurance coverage or a potential 
      increase in insurance costs; 
 
   -- natural disasters, epidemic or pandemic outbreaks, boycotts and 
      geo-political events such as civil unrest, acts of terrorism, the current 
      ongoing military conflicts or similar disruptions; 
 
   -- the outcome of any legal proceedings in which the Company is or may be 
      involved from time to time; and 
 
   -- any event or circumstance, including the materialization of any of the 
      foregoing risks and uncertainties, resulting in the Company's inability 
      to convert its order book into actual sales. 

These and other risks and uncertainties related to the business of Lion are described in greater detail in section 23.0 entitled "Risk Factors" of the Company's MD&A for the years ended December 31, 2023 and 2022. Many of these risks are beyond Lion's management's ability to control or predict. All forward-looking statements attributable to Lion or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained and risk factors identified in the the Company's MD&A for the three and nine months ended September 30, 2024 and in other documents filed with the applicable Canadian regulatory securities authorities and the U.S. Securities and Exchange Commission (the "SEC").

Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under applicable securities laws, Lion undertakes no obligation, and expressly disclaims any duty, to update, revise or review any forward-looking information, whether as a result of new information, future events or otherwise.

See section 2.0 of the Company's MD&A for the three and nine months ended September 30, 2024 entitled "Basis of Presentation," section 15.0 of the Company's MD&A for the three and nine months ended September 30, 2024 entitled "Liquidity and Capital Resources," and note 2 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 which indicate the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

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SOURCE The Lion Electric Co.

View original content: http://www.newswire.ca/en/releases/archive/November2024/06/c1644.html

/CONTACT:

Patrick Gervais, Vice President, Trucks & Public Affairs, patrick.gervais@thelionelectric.com, 514-992-1060

Copyright CNW Group 2024 
 

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November 06, 2024 17:05 ET (22:05 GMT)