- Exro has closed its second financing round, raising more than $4 million through private placement
- The company enters partnership with Finnish snowmobile producer to expand globally
- Successful financing rounds, international partnerships, inexhaustible market make XRO compelling high-growth investment opportunity
Exro Technologies Inc. (CSE: XRO) (OTCQB: EXROF), a Canadian technology company that develops intelligent energy-management systems designed to improve the performance and longevity of batteries, electric motors, and generators, has closed the second and final tranche of its oversubscribed, non-brokered private placement. The company raised $4,299,590 through the issuance of 12,284,545 common shares at a price of $0.35 per share (http://ibn.fm/2eDYb).
During this second tranche, XRO issued 2,253,897 shares for gross proceeds of $788,864. The company announced the closure of its first financing round last month (http://ibn.fm/eGwXn). In compliance with the prospectus and the relevant laws, the shares are subject to a four-month hold period from the date of issuance. Exro will use the funds raised in the private placement to finance the development of its current and new technology programs aimed at accelerating the global transition to clean energy, as well as for working capital, the development of its new Calgary Innovation Centre and other general business purposes.
XRO has also engaged in initiatives to penetrate new market segments by entering a strategic agreement with Finland’s Aurora Powertrains Oy. The Finnish partner, deemed one of the most innovative manufacturers of snowmobile powertrains globally, recently released eSled, an all-electric snowmobile. Exro and Aurora have teamed up to increase the snowmobile motor’s performance while decreasing the cost for future production.
“This is important as it takes Exro’s technology overseas to Europe and forms a key partnership with one of the transportation sector’s true innovators in the use of electric powertrains,” Exro CEO Sue Ozdemir stated in a news release.
The International Snow Machine Manufacturing Association’s (ISMA) latest research documents that the snowmobile sector has a global imprint with 124,786 snowmobiles sold worldwide in 2018. According to ISMA, the annual economic impact of snowmobiling is $26 billion in the United States, $8 billion in Canada, and $5 billion in Europe and Asia (http://ibn.fm/tMg3E).
Aurora CEO Ari Karjalainen confirmed the considerable value for both companies brought by this alliance. “Our company strategy is to strengthen our core competencies and, on the other hand, create partnerships with world-leading technology providers,” he said (http://ibn.fm/AN6Dr). “One step on this is cooperation with Exro, together with them, we are looking forward to working side-by-side to further develop the capabilities of our electric powertrain technology.” Karjalainen concluded that this is a growing global market that will continue to expand as consumers increasingly demand low-impact, no-emission recreation vehicles where products such as Exro’s could play a pivotal role.
Ari Berger, Exro’s chief technology officer, called the Aurora partnership a significant milestone in commercialization. “Our partnership with Aurora further proves Exro can be applied and scaled to a wide variety of sectors,” said Berger, who is leading the company’s expansion into sectors such as e-bikes, automotive fleets and the marine industry.
With consumers and companies becoming increasingly aware of their environmental impact, Exro’s portfolio of innovative products and technologies is gaining relevance as the company adds both economic and environmental value. As Exro’s products accelerate the adoption of electric and renewable power systems, the addressable market is virtually inexhaustible. XRO products are applicable not only in electric motors as the single-largest consumer of electricity but also generators and lithium-ion batteries–allowing the company to enter partnerships across a wide variety of sectors.
With its successful track record of financing rounds and valuable intellectual property portfolio consisting of more than 20 existing and pending patents, Exro poses an attractive opportunity for investors seeking to enter high-potential growth markets at an early stage.
For more information, visit the company’s website at www.Exro.com
NOTE TO INVESTORS: The latest news and updates relating to EXROF are available in the company’s newsroom at http://ibn.fm/EXROF
