CALGARY — A Canadian company developing new control products to improve efficiency and performance in electric motors and powertrains is aiming to raise between $30 million and $36.5 million through a public offering of its shares.
Exro Technologies Inc., which closed a lab in Victoria and opened a new innovation centre in Calgary over the summer, says it has priced the shares at $3.25 each.
The offering is to be conducted on a “best efforts” basis by a syndicate led by Raymond James Ltd. and Gravitas Securities Inc., with an overallotment option of up to 15 per cent. The offering is to close on or about Dec. 8.
The news comes a few days after Exro reported the engineering validation of its 100-volt coil driver, which it said was a “key milestone” for its entry into supplying commercial products to manufacturers in the electric car market.
It said it is on schedule to deliver a prototype to Potencia Industrial, S.A. DE C.V., a Mexican manufacturer of electrical motors and generators.
In a recent interview, CEO Sue Ozdemir said the company relocated to Calgary because of its relatively low cost industrial space and availability of engineers, some of whom are former oil and gas workers, as employees. She said the company has doubled its staff count to about 20 since last year and is still hiring.
“We’re a publicly traded company so we were on a tight budget. We wanted a large space to be able to welcome in customers and shareholders to be see our tech and how it works,” she said.
“Calgary had that opportunity with commercial rates that are less than Vancouver and Victoria and we knew there was a big engineering base here so we thought we would be able to pull in and train people and so far so good.”
The proceeds from the offering are to be used for research and development of the company’s battery management system and electric vehicle programs, as well as other corporate purposes.
Exro says its coil driver controller makes electric motors “smarter” by enabling multiple power settings in a single motor and can potentially be used in a wide variety of applications including electric bicycles, buses, generators, appliances, elevators and fans.
This report by The Canadian Press was first published Nov. 25, 2020
Companies in this story: (TSXV:EXRO)
The Canadian Press