CPE News (3.26.2023) – Taiga Motors Corporation (TSX: TAIG) has closed previously announced private placement of $40.15 million aggregate principal amount of 10% secured convertible debentures due March 31, 2028.
Northern Private Capital (together with its affiliates and funds managed by it and its affiliates, NPC) and Investissement Québec (IQ) subscribed for $25.15 million and $15 million of the debentures respectively.
Each debenture will be convertible, at the holder’s option, into common shares at a conversion price of $3.25 per share at any time before the maturity date of March 31, 2028. The debentures will bear interest at an annual rate of 10%, compounded and payable quarterly, which may, at the company’s election, be paid in cash or by issuing additional “paid in kind” debentures with the same terms, all maturing on the same maturity date.
As part of the private placement, Taiga has also agreed that as long as IQ is either a holder of debentures or a shareholder, Taiga will not move its head office, decision-making centre, principal place of business or research and development centre outside the Province of Québec without IQ’s prior written consent.
Andrew Lapham, Michael Fizzell and Francis (Frank) Séguin will join the Taiga board as nominees of NPC and Marc Fortin will join the board as IQ’s nominee. Kent Farrell, Nadia Martel, François R. Roy and Gabriel Bernatchez will resign from the board with current directors, Samuel Bruneau, Martin Picard and Tim Tokarsky remaining on the board.
Montreal based Taiga Motors Corporation is a leading electric off-road vehicle manufacturer.
On April 21, 2021, Taiga Motors Inc. completed business combination with Canaccord Genuity Growth II Corp., which constituted Canaccord Genuity Growth II’s qualifying acquisition (QA) transaction, Canaccord Genuity Growth II changed its name to “Taiga Motors Corporation.”
As part of the QA, Taiga Motors completed $100 million private placement of 6,666,666 common shares priced at $15 per share, led by NPC.
photo credit: Taiga Motors
News Release
Taiga Announces Closing of Private Placement of $40.15 million of Secured Convertible Debentures
MONTREAL, March 24, 2023 /CNW/ – Taiga Motors Corporation (“Taiga” or the “Company”) (TSX: TAIG), a leading electric off-road vehicle manufacturer, announced today that it has successfully closed its previously announced issuance, on a private placement basis, of $40.15 million aggregate principal amount of 10% secured convertible debentures due March 31, 2028 (the “Debentures”) (collectively, the “Private Placement”). The entirety of the Private Placement was subscribed for by two institutional investors, Northern Private Capital (together with its affiliates and funds managed by it and its affiliates, “NPC”) and Investissement Québec (“IQ”, and together with NPC, the “Investors”), having respectively subscribed for $25.15 million and $15 million of the Debentures. The Company realized net proceeds of approximately $36 million after payment of transaction-related fees and expenses. Further details are set out in the Company’s press release announcing the Private Placement issued on March 17, 2023.
“The capital from this investment will facilitate Taiga’s ability to scale its production and deliver our award-winning electric powersport vehicles to customers that have been eagerly waiting for their Taiga vehicles.” said Sam Bruneau, Chief Executive Officer and Co-Founder of Taiga Motors. “Our team of 269 employees has laid the foundation for Taiga to lead electrification of powersports, and now with the support of such significant investors, we’re looking forward to maintaining our technological edge and continuing to revolutionize powersports.”
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit www.taigamotors.com.