Exro Technologies Inc - EXROF stock
OTC Symbol: EXROF | OTC Tier: OTCQB | Related ticker symbols: TSX:EXRO
Introduction to Exro[edit]
Exro Technologies, Inc., a Canada-based technology company, produces electronics for batteries, generators, and electric motors. It focuses on commercializing its patented coil driver technology and proprietary project blueprint for power electronics. The firm also commercializes its Battery Control Storage system technology, which ensures stationary energy storage. Exro’s new generation power electronics changes global energy optimization WHvia the expansion of electric motors and battery capabilities. The company's products include A020 Coil Driver, L080 Coil Drive System, and L040 Coil Driver. The firm also offers electric vehicle consulting and engineering services. Its subsidiaries include Exro Technologies USA, Inc., DPM Technologies Inc., and Exro Vehicle Systems Inc.[1] Exro Tech. was founded in February 2014 by Jonathan Ritchey. Its stocks are publicly traded on TSX under the EXRO symbol and OTCQB under the EXROF ticker symbol. The company is headquartered in Calgary, Canada.[2]
Business Overview[edit]
The technology company develops power electronics for electric motors and batteries. It focuses on developing and commercializing its innovative technology, which bridges the performance cost gap in e-mobility through the Coil Driver and stationery energy storage via the Cell Driver. Its operations also propel the shift towards a circular electrified economy by availing more with less, ensuring maximum output using minimal energy. The firm's intelligent control products are designed to solve unique challenges in electrification. The firm wholly owns its technology and intellectual property in 13 patent families and continues to seek global protection across strategic countries. As of November 10, 2023, Exro had 27 patents issued and 16 pending applications, and three provisional applications. The company uses trade secrets to protect its proprietary software and algorithms.
Exro’s Coil Driver received two prestigious automotive industry awards in 2022. Its series production is scheduled for Q3 2023. On September 27, 2022, the company announced that its Cell Driver technology had surpassed test thresholds for Underwriters Laboratories (UL) product certification to achieve grid connection in North America. The firm has the right to market and secure orders for the product with the UL application set for Q3 2023. The company’s go-to-market strategy targets partnerships with established firms across different markets, especially those that embrace disruptive innovation products in their product lines and have substantial internal engineering capacity, an existing customer base, and growing sales. Companies that manufacture automotive commodities such as electric cars, bikes, and commercial electric vehicles are preferred. Exro penned a deal with Inferno Solar on September 28, 2022, giving the latter exclusive rights to market its Cell Driver.[3] The company has partnered with several e-mobility and energy storage firms worldwide, including VMC, Linamar, evTS, Zero Motorcycles, and Potencia Industrial, among others.[4]
Products[edit]
Coil Driver[edit]
The driver encompasses advanced power electronics that enable it to smoothly, and on-demand, switch modes between series and parallel, thereby enhancing AC motors’ performance in different applications yielding improved efficiency, power, and torque. The motor controllers market is forecasted to hit $133 billion by 2030.
Cell Driver[edit]
It is a fully integrated energy storage unit with an advanced Battery Control System. Exro’s Cell Driver employs active cell balancing to ensure full-capacity charging and discharging cycles, thereby up-scaling the battery's primary and secondary applications. The energy storage market is estimated at $224 Billion by 2030.
Cell Driver received ETL certification in 2024 which is a requirement for connecting to the grid in the USA and Canada.[5]
Exro Vehicle Systems[edit]
A product of the company’s engineering works advances innovative electrified power solutions and services covering the entire product development lifecycle. It exposes clients to next-generation powertrain expertise and technologies. The engineering services segment is committed to addressing its robust market, estimated to be $360 Billion by 2030.[4]
Mergers, Acquisitions and Partnerships[edit]
On February 27, 2023, Exro announced that it had signed an MoU for a strategic partnership with an undisclosed multinational company, a global Automotive Industry supplier. The agreement was set to involve demonstrating the performance of the partner's motor with Exro’s Coil Driver (standard L040 800V Coil Driver inverter product), which would eventually dictate the direction taken by the two parties. The partnership leverages Exro’s Coil Driver technology and the partner's design, manufacturing, and supplying muscle to develop top-tier powertrain solutions for commercial electric vehicles and off-road equipment for the North American and European markets.[6]
Exro also made a milestone in expanding its market footprint through strategic partnership on February 7, 2023, when it entered into a channel partnership with Greentech Renewables Southwest, a division of Consolidated Electrical Distributors ("CED") Greentech. CED Greentech is one of the US's largest solar equipment distributors. Exro targets Grentech’s surging demand for energy storage in C&I applications and EV charging stations while expanding its market presence. The company intends to integrate its Cell Driver with the partner's solar panel products, creating flexible energy assets for the grid and off-grid applications.[7]
Exro merged with SEA Electric in April, 2024 in a stock based arrangement that resulted in the issuance of 146,453,200 common shares and 160,589,446 preferred shares. SEA Electric, which will operated as a subsidiary, provides electric drivetrain technology and operates in North America, Asia, and Africa.[8]
Funding[edit]
On December 30, 2022, the company announced it had created and issued debentures, entered between Exro and Odyssey Trust Company as the trustee. The debentures are set to accrue 12% of the annual interest payable semi-annually in areas from June 30, 2023, to December 31, 2027. At Exro’s option, the interest may be advanced in the company’s common shares at a price equal to its shares’ volume-weighted average price (VWAP) on TSX. The company is entitled to a 105% redemption of the principal amount plus accrued and unpaid Interest after December 31, 2024. The companies also entered warrant agreements with Odyssey Trust Company as warrant agents. Each warrant is exercisable for a common share of Exro over five years from closing at $2.40 per common share, subject to future adjustments.[9] In June, 2024 Exro issued 1,794,000 common shares valued at $997,000 to the debenture owners in payment of interest.[10]
A bought deal financing for $30,000,000 was completed in early 2024.[11]
- ↑ Exro Technologies Inc. Profile – CNBC News. Accessed on March 21, 2023.
- ↑ Exro Technologies Inc. Management Discussion and Analysis for the Nine Months Ended September 30, 2022/ Business Overview, Page 1. November 10, 2022.
- ↑ Exro Technologies Inc. Management Discussion and Analysis for the Nine Months Ended September 30, 2022/ Business Overview, Intellectual Property, and Go-to-Market Strategy Pages 1 & 3. November 10, 2022.
- ↑ 4.0 4.1 Why Invest with Exro – Exro website/Investors.
- ↑ PR Newswire. Exro Announces ETL Certification for Cell Driver™ Energy Storage and Launch of Cellex Energy Inc. June 27, 2024.
- ↑ Exro Announces Signing of Strategic Partnership MoU with European-based Global Automotive Industry Supplier – Seeking Alpha. February 27, 2023.
- ↑ Exro Partners with Greentech Renewables SW to Bring Energy Storage Systems to Commercial Building Owners Across the USA – Yahoo Finance. February 7, 2023.
- ↑ PR Newswire. Exro and SEA Electric Announce Completion of Merger. April 5, 2024.
- ↑ Exro Announces Closing of Previously Announced Bought Deal Convertible Debenture Financing for Gross Proceeds of $15 Million – Exro’s Newsroom. December 30, 2022.
- ↑ PR Newswire. Exro Announces Interest Payment on Convertible Debentures. June 24, 2024.
- ↑ Gowling WJG. Exro Technologies closes $30 million bought deal financing of subscription receipts. February 16, 2024. Archive link.
