Lion Electric shares surged on Monday after the Quebec-based electric school bus manufacturer announced that it has extended debt deadlines with its lenders and has temporarily laid off more than half its workforce.
The company's stock was up 135% at C$0.60 mid-morning on the update.
Lion Electric said in a statement it has moved the deadline for its financial agreements to December 16 from November 30.
This includes a credit agreement with lenders represented by the National Bank of Canada and a loan agreement with Finalta Capital and Caisse de dépôt et placement du Quebec.
It is temporarily laying off approximately 400 employees in Canada and the United States, impacting workers across all departments.
As a result of the workforce reduction, the company’s facility in Joliet, Illinois will also be suspended.
It will retain approximately 300 employees who will be focused on bus manufacturing, sales, and delivery operations, along with supporting customers in vehicle servicing and maintenance on the road.