Why Lion Electric Stock Is Charging Higher Monday

The Lion Electric Co LEV shares are trading higher Monday after the company announced it entered into subscription agreements with investors contemplating concurrent finance transactions.

What To Know: The subscription agreements will result in aggregate gross proceeds of approximately $142 million. The financing is expected to close on or about July 19. Lion Electric said it intends to use the proceeds to fund working capital, strengthen its financial position and allow it to continue to pursue its growth strategy.

"This financing transaction represents a key milestone for Lion, as it provides us with flexibility to execute our growth plans," said Marc Bedard, founder and CEO of Lion Electric.

"We are extremely thankful to the Province of Quebec and Investissement Quebec for their continued support of Lion, and to the new investors joining this round, including Fonds FTQ, Fondaction and a group of private investors led by Mach Group and the Mirella & Lino Saputo Foundation."

Lion Electric designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments.

See Also: What's Going On With Ford Stock?

LEV Price Action: Lion Electric shares were up 14.1% at $2.42 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Lion Electric.