Exro Provides Corporate Update, Postpones Annual General Meeting

Rhea-AI Summary

Exro Technologies (TSX: EXRO) has announced significant corporate restructuring measures amid ongoing strategic review. The company is currently in discussions for the potential sale of its intellectual property, technology, and certain business components. As part of cost-reduction initiatives, Exro has terminated approximately 60 employees, primarily from its Cell Driver and Coil Driver units, along with SEA Driver operational support staff.

The company continues to operate under its May 2025 credit facility and is negotiating revised milestones to maintain access to funding. Additionally, Exro has postponed its annual general meeting originally scheduled for September 5, 2025, with a new date to be announced later.

Positive

• Company maintains support from senior secured lender under existing credit facility
• Strategic review process exploring potential asset sales to preserve value

Negative

• Significant workforce reduction with approximately 60 employees terminated
• Uncertain financial position requiring revised credit facility milestones
• Potential sale of core intellectual property and technology assets indicates financial distress
• Operations significantly scaled down across multiple business units

CALGARY, AB, Sept. 3, 2025 /PRNewswire/ - Exro Technologies Inc. (TSX: EXRO) ("Exro" or the "Company") provides the following corporate update.

Exro's strategic review process is ongoing, with current discussions focused on the potential sale of the Company's intellectual property and technology, and the potential sale of certain limited components of the Company's business. There can be no assurance that any transaction will be completed, and Exro will provide further updates if and when any binding agreements are signed.

Exro has taken steps to reduce costs and preserve cash by terminating approximately 60 of its employees, including most of the employees in its Cell Driver and Coil Driver units and several operational support staff in SEA Driver.

The Company continues to operate with the support of its senior secured lender under the credit facility announced on May 16, 2025, and is in the process of negotiating revised milestones to access the facility which reflect Exro's updated cost reduction and repositioning initiatives. Continued access to the facility will, in part, be dependent on the outcome of certain asset sale discussions.

The Company has postponed its annual general meeting of shareholders scheduled for September 5, 2025. A new meeting date will be announced when it has been determined.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified using terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by the Company with the Canadian securities regulators, including the Company's annual information form for the financial year ended December 31, 2024, and financial statements and related MD&A for the financial year ended December 31, 2024, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties, and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated, or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.

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SOURCE Exro Technologies Inc.

FAQ

What restructuring measures has Exro Technologies (EXROF) announced in September 2025?

Exro has terminated approximately 60 employees across its Cell Driver, Coil Driver units, and SEA Driver operations as part of cost-reduction measures. The company is also exploring the sale of its intellectual property and certain business components.

Why did Exro Technologies postpone its 2025 Annual General Meeting?

Exro postponed its AGM scheduled for September 5, 2025, amid ongoing strategic review and restructuring efforts. A new meeting date will be announced once determined.

What is the status of Exro Technologies' credit facility from May 2025?

The company continues to operate with support from its senior secured lender but is negotiating revised milestones to maintain access to the facility, which will partly depend on asset sale discussions.

What assets is Exro Technologies considering selling in 2025?

Exro is in discussions regarding the potential sale of its intellectual property, technology, and certain limited components of the company's business operations.

How many employees were affected by Exro Technologies' 2025 layoffs?

Exro terminated approximately 60 employees, primarily from its Cell Driver and Coil Driver units, along with several operational support staff in SEA Driver.