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Exro Technologies Inc. (EXRO-T) will be shuttering its U.S. operations, the Calgary-based power electronics company announced Wednesday afternoon, which will impact its subsidiaries and result in cuts to non-essential staff.
The developer and manufacturer of the Cell Driver and Coil Driver, used in electric vehicles and energy storage equipment, respectively, said its directors made the decision following talks with advisors and shareholders.
Exro’s U.S. operations include its 15,000-square-foot regional headquarters in Mesa, Ariz., and offices in Iowa, West Virginia and Virginia. The company also acquired California-based SEA Electric Inc. as a subsidiary in 2024.
Details about the shutdown of its U.S. operations were scant. Exro did not disclose how many people would be laid off, for example, or a timeline for the transition.
The company anticipates the Toronto Stock Exchange will place it under delisting review. As of Wednesday afternoon, Exro shares were trading at $0.02.
Exro's troubles continue
The news should not come as a surprise to observers of the company. It is in the midst of deep financial troubles, running at a loss for consecutive quarters. In Q2 for instance, it reported a net loss of $78.9 million with revenue of $2.9 million.
Sue Ozdemir stepped down as CEO earlier this month as the company undergoes a restructuring.
To recover, Exro announced in May it received a funding commitment from a long-term institutional shareholder to provide up to US$30 million through a loan facility. The funds would be used to continue operations while the company developed a business plan and conducted a strategic review.
The review would explore opportunities such as selling intellectual property, forging partnerships, capital restructuring and a merger and acquisition.
In early September, Exro announced it laid off approximately 60 employees, most in its Cell Driver and Coil Driver units, plus operational support staff in SEA Driver.
Exro wound down its Asia-Pacific operations in Q2.
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