The New York Stock Exchange intends to delist certain Lion Electric warrants

The New York Stock Exchange has initiated proceedings to delist certain Lion Electric warrants, as their sale price has reached “abnormally low levels.”

The Quebec-based manufacturer of electric buses and trucks explained on Wednesday that the regulatory staff of the New York Stock Exchange decided to initiate proceedings to delist its warrants, which expire on May 6, 2026.

Trading in these warrants was suspended immediately, but trading in the company’s common stock and another series of warrants with an expiration date of Dec. 15, 2027, will continue.

According to Lion, the New York Stock Exchange made the decision because its regulatory staff determined that the warrants in question were no longer suitable for trading on the exchange due to “abnormally low levels of the sale price.”

The Saint-Jérôme-based company is evaluating the possibility of requesting a review of the decision.

Warrants give their holders the right to buy shares in the issuing company at a set price within a pre-determined period.

Lion uses this mechanism on the New York Stock Exchange and the Toronto Stock Exchange.

Lion Electric is currently going through a turbulent period.

On Monday, the company opened the door to a possible sale, maintaining that it was considering various sources of financing as well as solutions that “could include the sale of the company.”

Lion has reported losses in excess of $131 million over the last four quarters and has announced at least 520 redundancies so far this year, representing more than 40 per cent of its workforce.

On Tuesday, Lion’s shares closed down 15.54 per cent on the New York Stock Exchange at 24 US cents, and down 16.25 per cent on the Toronto Stock Exchange at 34 cents.

— This report by The Canadian Press was first published in French on Nov. 20, 2024.