11:49 AM EST, 12/02/2024 (MT Newswires) -- Lion Electric ( LEV ) , a manufacturer of all-electric vehicles, over the weekend said it will cut more than half its workforce, or about 400 employees, through temporary layoffs in Canada and the United States as it restructures its operations.

The company will be left with about 300 employees who will focus on bus manufacturing, sales and delivery, and customer assistance, the company said. Manufacturing at its Joliet, Illinois, plant will be suspended.

The company also said it secured additional liquidity to have time to evaluate potential alternatives that may include a restructuring, a sale of the business or certain assets, or credit protection under the Companies' Credit Arrangement Act.

The additional liquidity will come by way of amendments to the company's senior revolving credit agreement with a syndicate of lenders and loan agreement with Finalta Capital and Caisse de depot et placement du Quebec.

The amendments extend the period applicable to the suspension of the financial covenants under the revolving credit agreement from Nov. 30 to Dec. 16 and extend the maturity date under the loan agreement from Nov. 30 to Dec. 16.

An additional advance will be made under the revolving credit agreement and the company will be allowed under the loan agreement to use part of the receivables to fund its minimum liquidity needs until Dec. 16.

The syndicate of lenders are represented by National Bank of Canada as administrative agent and collateral agent and includes Bank of Montreal and Federation des Caisses Desjardins du Quebec.

Lion Electric's ( LEV ) shares were last seen up $0.165 to $0.42 on the Toronto Stock Exchange.

Price: 0.42, Change: +0.16, Percent Change: +62.75