Xos has closed its acquisition of ElectraMeccanica Vehicles Corp., a designer and assembler of electric vehicles. Terms of the acquisition were first announced on Jan. 11, 2024.
The all-stock transaction is expected to add approximately $48 million to Xos' balance sheet and provide growth capital for the company.
"The growth capital received in the transaction, combined with our reduction of cash burn, provides an important pathway to profitability as we scale deliveries over the next several quarters," says Dakota Semler, CEO and co-Founder of Xos, Inc. "Xos is gross margin positive and has now charted our course to being free cash flow positive."
Xos delivered a company record 110 units to fleet customers in the fourth quarter of 2023. The company's customers in 2023 included FedEx Ground, UPS, Loomis, Canada Post, UniFirst, and Penske, showcasing strong demand for its electric commercial vehicles. With the addition of ElectraMeccanica's cash balance, Xos is well-positioned to continue its growth and meet the increasing demand for zero-emission commercial vehicles.
"We are confident that this acquisition will further strengthen Xos' commitment to operational excellence, customer-focused vehicles, and efficient capital deployment," says Giordano Sordoni, COO and co-founder of Xos, Inc.
The consideration received by ElectraMeccanica shareholders pursuant to the acquisition was 0.0143739 shares of Xos common stock for each common share of ElectraMeccanica held immediately prior to the consummation of the Arrangement. As a result, following the close of the Arrangement, former shareholders of ElectraMeccanica own approximately 21.0% of Xos, the company says.
With the completion of the Arrangement, the common shares of ElectraMeccanica will be delisted from Nasdaq on or about March 26, 2024. Xos will also cause ElectraMeccanica to surrender its reporting issuer status in British Columbia, the company says.
