Xos and ElectraMeccanica Announce Proposed Business Combination

Xos, Inc., a US electric truck manufacturer and fleet electrification services provider, and ElectraMeccanica, , a designer and assembler of electric vehicles (EVs), have announced a business combination in which Xos will acquire all of the issued and outstanding common shares of ElectraMeccanica. The members of the boards of directors of both companies unanimously approved the proposed transaction.

Following the close of the transaction, ElectraMeccanica’s shareholders will own approximately 21.0% of Xos.

Xos with gain access to ElectraMeccanica’s cash balance which is expected to be approximately $48.5 million at the time of the closing of the transaction.

The annoucement follows the collapse of a deal with the UK's Tevva.

Xos manufacturers medium-duty commercial EVs for parcel delivery, uniform rental, food and beverage, and cash-in-transit fleets across the US and Canada.

It has demonstrated its ability to profitably scale manufacturing of commercial EVs in its Tennessee factory, capable of producing up to 5,000 vehicles per year at peak capacity.

Dakota Semler, Chief Executive Officer and Chairman of Xos, says: “For seven years, Xos has designed and manufactured commercial electric vehicles that are relied upon by several of the world’s largest and most recognizable commercial fleets. We are a leader in producing robust electric commercial vehicles and are delivering positive gross margins today. We believe leveraging ElectraMeccanica’s assets will strengthen Xos’ leadership position in the robust commercial truck market and allow Xos to scale profitable vehicle sales.”

Susan Docherty, Chief Executive Officer of ElectraMeccanica, adds: “In my last shareholder update, I stated that nothing was a higher priority than finding the right partner for us to create and re-accelerate shareholder value. We believe the proposed combination with Xos would achieve our management team’s objective to generate revenues, achieve credible long-term profitability and improve shareholder value.

Xos leverages its proprietary technologies to provide commercial fleets with BEVs that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts,