Lion Electric Shares Are Rising Monday: What's Going On?

Lion Electric Company LEV shares are trading higher Monday. The company announced amendments to senior credit instruments and workforce reductions. Here’s what you need to know.

What To Know: On Sunday, Lion Electric disclosed amendments to its senior revolving credit agreement and loan agreement with Finalta Capital and Caisse de dépôt et placement du Québec. The changes include extensions for financial covenant suspensions and maturity dates from Nov. 30 to Dec. 16.

The company said additional liquidity from the amendments will provide Lion Electric with the means to meet minimum operational needs and continue exploring strategic alternatives. Such may include restructuring obligations, asset sales or seeking creditor protection.

Lion Electric also announced temporary layoffs of approximately 400 employees across Canada and the United States, reducing its workforce to around 300 employees total. Remaining employees will focus on vehicle manufacturing, sales, delivery and servicing. The company noted that the workforce cut led it to suspend its manufacturing operations at its Joliet, Illinois facility.

LEV Price Action: Lion Electric Company shares were up 64.1% at 31 cents at the time of writing, according to Benzinga Pro.

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