The Quebec-based company made the announcement after a deadline to meet its obligations to key creditors passed
Lion said it received additional liquidity that will “provide the company with additional time to continue to actively evaluate potential alternatives relating to a restructuring of its obligations, a sale of the business or certain of its assets, strategic investments and/or any other alternatives.”
Lion, which went public in 2021, has run into a cash crunch while facing supply chain disruptions and a dispute with a battery supplier. Shares are down by almost 90 per cent since this year, closing at about 18 cents in New York on Friday.
The workforce reduction in the U.S. and Canada will leave Lion with about 300 employees, who will focus on bus manufacturing, sales and delivery, and customer support, according to the statement.
Quebec’s electric vehicle industry is going through a difficult period.