Xos, Inc., a prominent electric truck manufacturer and provider of fleet electrification services, has successfully finalized its acquisition of ElectraMeccanica Vehicles Corp., a noted designer and assembler of electric vehicles. This strategic move, initially announced on January 11, 2024, marks a significant step in Xos’ growth trajectory, bolstering its balance sheet by approximately $48 million and enhancing its capital for further expansion.
Key Highlights:
- Strategic Acquisition: Xos, Inc. acquires ElectraMeccanica, enriching its portfolio and financial health.
- Financial Boost: The deal adds about $48 million to Xos’ balance sheet, aiding in growth and scalability.
- Record Deliveries: Xos achieved a record delivery of 110 units in Q4 2023, demonstrating strong market demand.
- Shareholder Details: ElectraMeccanica shareholders receive 0.0143739 shares of Xos stock for each share held.
“The growth capital received in the transaction, combined with our reduction of cash burn, provides an important pathway to profitability as we scale deliveries over the next several quarters,” Dakota Semler, CEO and Co-Founder of Xos, Inc., highlighted the acquisition’s role in the company’s path to profitability and scalability. With a gross margin positive status, Xos is now navigating towards becoming free cash flow positive.
In 2023, Xos delivered a company record of 110 units to its fleet customers, including major names like FedEx Ground, UPS, and Canada Post, underscoring the increasing demand for electric commercial vehicles. The integration of ElectraMeccanica’s cash balance positions Xos for sustained growth in the zero-emission commercial vehicle market.
Giordano Sordoni, COO and Co-Founder of Xos, Inc., expressed confidence that the acquisition will enhance the company’s operational excellence and customer-focused approach.
Following the acquisition, ElectraMeccanica’s shares will be delisted from Nasdaq, with its shareholders owning approximately 21.0% of Xos. This consolidation aims to streamline operations and reinforce Xos’ market position as a leader in the electric truck manufacturing and fleet services sector.
For further information, stakeholders are directed to the early warning report filed under ElectraMeccanica‘s profile on SEDAR+, detailing the acquisition’s specifics and its implications for both companies’ futures.
About Xos, Inc.: Xos stands as a leading technology firm, revolutionizing the electric truck industry and fleet management through innovative solutions designed for medium- and heavy-duty commercial vehicles. Its focus on sustainable, efficient, and cost-effective transport options positions Xos as a key player in the transition to battery-electric fleet operations. Visit www.xostrucks.com for more information.
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