Xos, Inc (XOS)

[WeTheMarket]

Xos, Inc. Accelerates Growth with Strategic Acquisition of ElectraMeccanica
March 26 2024
https://ih.advfn.com/stock-market/NASDAQ/xos-XOS/stock-news/93550980/xos-inc-accelerates-growth-with-strategic-acquis

Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet electrification services provider, today announced that it has closed its acquisition of ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) (“ElectraMeccanica”), a designer and assembler of electric vehicles. Terms of the acquisition were first announced on January 11, 2024.
The all-stock transaction is expected to add approximately $48 million to Xos’ balance sheet and provide growth capital for the company.

“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,” said Dakota Semler, CEO and Co-Founder of Xos, Inc. “Xos is gross margin positive and has now charted our course to being free cash flow positive.”

Xos delivered a company record 110 units to fleet customers in the fourth quarter of 2023. The company’s customers in 2023 included FedEx Ground, UPS, Loomis, Canada Post, UniFirst, and Penske, showcasing strong demand for its electric commercial vehicles. With the addition of ElectraMeccanica's cash balance, Xos is well-positioned to continue its growth and meet the increasing demand for zero-emission commercial vehicles.

"We are confident that this acquisition will further strengthen Xos' commitment to operational excellence, customer-focused vehicles, and efficient capital deployment," said Giordano Sordoni, COO and Co-Founder of Xos, Inc.

The consideration received by ElectraMeccanica shareholders pursuant to the acquisition (the “Arrangement”) was 0.0143739 shares of Xos common stock for each common share of ElectraMeccanica held immediately prior to the consummation of the Arrangement. As a result, following the close of the Arrangement, former shareholders of ElectraMeccanica own approximately 21.0% of Xos.

With the completion of the Arrangement, the common shares of ElectraMeccanica will be delisted from Nasdaq on or about March 26, 2024. Xos will also cause ElectraMeccanica to surrender its reporting issuer status in British Columbia.

Required Early Warning Report Information

Following completion of the Arrangement, Xos has beneficial ownership and control over 100% of the issued and outstanding common shares of ElectraMeccanica. Prior to the Arrangement, Xos held no common shares of ElectraMeccanica.

This press release is being issued, in part, pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues which requires a report to be filed under ElectraMeccanica’s profile on SEDAR+ (www.sedarplus.ca) containing additional information respecting the foregoing matters. You may also contact Michael Lukas at [phone] to obtain a copy of the report.

About Xos, Inc.
Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The company leverages its proprietary technologies to provide commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, visit www.xostrucks.com.

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