The Quebec company, which produces electric trucks and school buses, has opened the door to a possible sale.
The New York Stock Exchange (NYSE) has initiated procedures to delist certain warrants issued by the Quebec-based Lion Electric Company because their sale prices have reached “abnormally low levels.”
The company, which produces electric trucks and school buses, said Wednesday that NYSE personnel decided to engage in the delisting of warrants with expiration dates of May 6, 2026.
Trading in the warrants was suspended immediately, although common shares and another series of warrants with an expiry date of Dec. 15, 2027 will continue.
Lion Electric, based in St-Jérôme, is examining whether to seek a review of Wednesday’s decision.
Warrants allow their holders to purchase shares at a predetermined price and within a pre-established period of time. Lion Electric uses the mechanism on the NYSE and the Toronto Stock Exchange.
Lion Electric is in the midst of a difficult period. On Monday, the company opened the door to a possible sale, maintaining it was considering various sources of financing as well as solutions that “could include the sale of the business.”
Lion reported losses of more than $131 million over the past four quarters and announced 520 layoffs thus far this year — 40 per cent of its workforce.
On Tuesday, Lion Electric stock closed down 15.54 per cent on the NYSE at 24 cents and down 16.25 per cent on the Toronto Exchange at 34 cents.