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Exro Technologies Inc., a leading clean technology company specializing in power control solutions for electric vehicles and energy storage, provides a further update on the satisfaction of the near-term strategic milestones established in connection with the company's US$30 million credit facility announced on May 16, 2025.
Postponement of Debenture Security
As the Company announced in its May 16, 2025 news release, advances under the Facility require Exro to meet various milestones, one of which was either (1) the postponement of security from a requisite majority of the Company's $15 million of debentures issued pursuant to an indenture dated December 30, 2022 (the "Convertible Debentures"), or (2) the redemption of the Convertible Debentures for Exro shares.
The December 30, 2022 indenture governing the Convertible Debentures (the "Indenture") has been amended to provide that the lender under the Facility has a first priority security interest on substantially all of the assets of the Company, and the Convertible Debentures now have a second priority security position, ranking pari passu with previously issued secured notes of the Company in the aggregate amount of US $70,832,830. In addition, the Indenture was amended to include a 120 day standstill period in respect of the enforcement of certain rights by the holders of the Convertible Debentures on the occurrence of an event of default under the Indenture. The amendments to the Indenture were approved by an extraordinary resolution of over 66 2/3% of the principal outstanding amount of the Convertible Debentures and are contained in an Amended and Restated Indenture dated July 11, 2025, a copy of which has been filed under the Company's profile.
