The deadline passed for Lion Electric Company to repay loans needed to overcome hundreds of millions in debt, but the school bus manufacturer is not heading into bankruptcy, a company spokesperson said.

The statement made to School Transportation News on Tuesday came amid a Lion press release earlier in the day that highlighted use of the Companies Credit Arrangement Act (CCAA), a Canadian federal law dating back to 1933 that allows insolvent companies to avoid liquidation. This occurs through court-directed compromise or arrangement made by a debtor company and its secured creditors.

Lion on Wednesday formally applied for CCAA protection. It also said it will seek recognition of the CCAA process under chapter 15 of the U.S. bankruptcy code.

In the press release on Tuesday, Lion said it “is currently in discussions with its senior lenders to obtain additional funds pursuant to a new debtor-in-possession credit facility and expects to seek creditor protection” under the CCAA as it seeks to restructure its business and financial affairs. Lion added it pursues a formal sales and investment solicitation process for the company’s business or assets.

The Lion spokesperson referred to the CCAA proceedings as a “stable and structured environment” for various restructuring measures under a Revolving Credit Agreement with two lenders represented by the National Bank of Canada and a loan agreement with Finalta Capital Fund that expired on Monday. No timeline was given for when the CCAA agreements will be finalized.

On Dec. 1, Lion announced the latest of four amendments to the Revloving Credit Agreement and an extension of the Finalta Capital loan agreement, a halt to all production at its manufacturing plant in Joliet, Illinois, and the laying off an additional 400 workers on top of the 120 employees laid off in April. The company has trimmed its workforce from nearly 1,300 employees to about 300.

A separate SEC filing that same day announced the Nicolas Brunet resigned as president.
Four days later, Lion said it reached an agreement to sell its Quebec innovation center for $35 million U.S. The company noted in its third-quarter financial results total liabilities of $500 million and a net loss of nearly $75 million as of Sept. 30.

Related: Brunet Resigns as Lion Electric President Amid Company Battle to Stay Solvent
Related: Updated: Lion Electric Suspends Manufacturing Operations at Joliet Plant
Related: NYSE to Commence Delisting Proceedings with Respect to the Warrants of Lion Electric

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MONTREAL, Canada- The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced its financial and operating results for the third quarter of fiscal year 2024, which ended on September 30, 2024. Lion reports its results in US dollars and in accordance with International Financial Reporting Standards (“IFRS”).

Q3 2024 Financial Highlights:
Revenue of $30.6 million, down $49.7 million, as compared to $80.3 million in Q3 2023.
Delivery of 89 vehicles, a decrease of 156 vehicles, as compared to the 245 delivered in Q3 2023.
Gross loss of $16.0 million, as compared to gross profit of $5.4 million in Q3 2023.
Net loss of $33.9 million, as compared to net loss of $19.9 million in Q3 2023.
Adjusted EBITDA1 of negative $19.5 million, as compared to negative $3.9 million in Q3 2023.
Additions to property, plant and equipment of $0.4 million, down $15.8 million, as compared to $16.2 million in Q3 2023.
Additions to intangible assets, which mainly consist of vehicle and battery development activities, amounted to $6.0 million, down $9.0 million as compared to $15.0 million in Q3 2023.

Business Updates:
More than 2,200 vehicles on the road, with over 32 million miles driven (over 52 million kilometers).
Vehicle order book2 of 1,590 all-electric medium- and heavy-duty urban vehicles as of November 6, 2024, consisting of 135 trucks and 1,455 buses, representing a combined total order value of approximately $420 million based on management’s estimates.
LionEnergy order book of 366 charging stations and related services as of November 6, 2024, representing a combined total order value of approximately $8 million.
12 experience centers in operation in the United States and Canada.

“In Q3, we further adjusted our cost structure and optimized our operations to continue to execute on our business strategy to support and promote the increasing electric school bus demand and maintain our leadership position, despite the persistent challenges that we and our industry continue to face and which put significant pressure on our liquidity” stated Marc Bedard, CEO-Founder of Lion. “We also experienced very good momentum in the latest rounds of the EPA Clean School Bus program and will keep our focus on delivering to push forward the electrification of school buses all over America” he added.

Select Explanations on Results of Operations for the Third Quarter of Fiscal Year 2024:

Revenue
For the three months ended September 30, 2024, revenue amounted to $30.6 million, a decrease of $49.7 million, compared to the corresponding period in the prior year. The decrease in revenue was due to a decrease in vehicle sales volume of 156 units, from 245 units (220 school buses and 25 trucks; 132 vehicles in Canada and 113 vehicles in the U.S.) for the three months ended September 30, 2023, to 89 units (71 school buses and 18 trucks; 45 vehicles in Canada and 44 vehicles in the U.S.) for the three months ended September 30, 2024. The decrease in vehicle sales volume was primarily attributable to the impact of the timing of EPA rounds and the continued delays and challenges associated with the granting of subsidies to the Company’s clients related to the ZETF program, as well as the impact on the Company’s production cadence due to the continued integration of its Lion MD batteries onto its vehicles and the continued ramp-up of production of the Lion5 and LionD platforms. The Company’s objective to preserve liquidity also had a negative impact on the rate of production and deliveries during the third quarter.

For the nine months ended September 30, 2024, revenue amounted to $116.4 million, a decrease of $76.7 million, compared to the nine months ended September 30, 2023. The decrease in revenue was due to a decrease in vehicle sales volume of 278 units, from 664 units (593 school buses and 71 trucks; 518 vehicles in Canada and 146 vehicles in the U.S.) for the nine months ended September 30, 2023, to 386 units (350 school buses and 36 trucks; 294 vehicles in Canada and 92 vehicles in the U.S.) for the nine months ended September 30, 2024. The decrease in vehicle sales volume was primarily attributable to the impact of the timing of EPA rounds and the continued delays and challenges associated with the granting of subsidies to the Company’s clients related to the ZETF program, as well as the impact on the Company’s production cadence due to the continued integration of its Lion MD batteries onto its vehicles and the continued ramp-up of production of the Lion5 and LionD platforms. The Company’s objective to preserve liquidity also had a negative impact on the rate of production and deliveries during the third quarter.

Cost of Sales
For the three months ended September 30, 2024, cost of sales amounted to $46.6 million, representing a decrease of $28.4 million, compared to the corresponding period in the prior year. The decrease was primarily due to lower sales volumes, partially offset by increased manufacturing costs related to the continuing ramp-up of the new products (LionD, Lion5, and the Lion battery packs) and lower production volumes (which resulted in higher fixed manufacturing costs per unit produced).

For the nine months ended September 30, 2024, cost of sales amounted to $158.7 million, representing a decrease of $30.8 million, compared to the nine months ended September 30, 2023. The decrease was primarily due to lower sales volumes, partially offset by increased manufacturing costs related to the continuing ramp-up of the new products (LionD, Lion5, and the Lion battery packs) and lower production volumes (which resulted in higher fixed manufacturing costs per unit produced).

Gross Profit (Loss)
For the three months ended September 30, 2024, gross loss increased by $21.3 million to negative $16.0 million, compared to positive $5.4 million for the three months ended September 30, 2023. The gross loss was primarily due to the impact of lower sales volumes, increased manufacturing costs related to the continuing ramp-up of the new products (LionD, Lion5, and the Lion battery packs) and lower production volume (which resulted in higher fixed manufacturing costs per unit produced).

For the nine months ended September 30, 2024, gross loss increased by $45.8 million to negative $42.3 million, compared to negative $3.5 million for the nine months ended September 30, 2023. The increase in the gross loss was primarily due to the impact of lower sales volumes, increased manufacturing costs related to the continuing ramp-up of the new products (LionD, Lion5, and the Lion battery packs) and lower production volume (which resulted in higher fixed manufacturing costs per unit produced).

Administrative Expenses
For the three months ended September 30, 2024, administrative expenses decreased by $3.3 million, from $13.0 million for the corresponding period in the prior year, to $9.7 million. Administrative expenses for the three months ended September 30, 2024 included $0.3 million of non-cash share-based compensation, compared to $1.0 million for the three months ended September 30, 2023. Excluding the impact of non-cash share-based compensation, administrative expenses decreased from $12.0 million for the three months ended September 30, 2023, to $9.4 million for three months ended September 30, 2024. The decrease was mainly due to a decrease in expenses and a lower headcount, both resulting from the workforce reduction and cost reduction initiatives implemented since November 2023, including as part of the July 2024 Action Plan.

For the nine months ended September 30, 2024, administrative expenses decreased by $6.7 million, from $38.5 million for the nine months ended September 30, 2023, to $31.8 million. Administrative expenses for the nine months ended September 30, 2024 included $1.1 million of non-cash share-based compensation, compared to $3.6 million for the nine months ended September 30, 2023. Excluding the impact of non-cash share-based compensation, administrative expenses decreased from $34.8 million for the nine months ended September 30, 2023, to $30.7 million for nine months ended September 30, 2024. The decrease was mainly due to a decrease in expenses and a lower headcount, both resulting from the workforce reduction and cost reduction initiatives implemented since November 2023, including as part of the July 2024 Action Plan.

Selling Expenses
For the three months ended September 30, 2024, selling expenses decreased by $1.4 million, from $5.2 million for the three months ended September 30, 2023, to $3.8 million. Selling expenses for the three months ended September 30, 2024 included $0.1 million of non-cash share-based compensation, compared to $0.3 million for the three months ended September 30, 2023. Excluding the impact of non-cash share-based compensation, selling expenses decreased from $4.8 million for the three months ended September 30, 2023, to $3.7 million for three months ended September 30, 2024. The decrease was primarily due to lower sales commission expenses in line with lower sales volumes and to streamlined selling related expenses, including lower headcount and marketing costs resulting from the workforce reduction and cost reduction initiatives implemented since November 2023, including as part of the July 2024 Action Plan.

For the nine months ended September 30, 2024, selling expenses decreased by $4.7 million, from $16.5 million for the nine months ended September 30, 2023, to $11.8 million. Selling expenses for the nine months ended September 30, 2024 included $0.2 million of non-cash share-based compensation, compared to $1.2 million for the nine months ended September 30, 2023. Excluding the impact of non-cash share-based compensation, selling expenses decreased from $15.3 million for the nine months ended September 30, 2023, to $11.6 million for nine months ended September 30, 2024. The decrease was primarily due to lower sales commission expenses in line with lower sales volumes and to streamlined selling related expenses, including lower headcount and marketing costs resulting from the workforce reduction and cost reduction initiatives implemented since November 2023, including as part of the July 2024 Action Plan.

Restructuring Costs
Restructuring costs of $0.8 million for the three months ended September 30, 2024 and $2.2 million for the nine months ended September 30, 2024 are comprised mainly of severance costs related to the workforce reductions and July 2024 Action Plan as described in section 8.0 of the Company’s MD&A for the three and nine months ended September 30, 2024 entitled “Operational Highlights”.

Finance Costs
For the three months ended September 30, 2024, finance costs increased by $5.3 million, from $7.7 million for the three months ended September 30, 2023, to $13.0 million for the three months ended September 30, 2024. Finance costs for the three months ended September 30, 2024 were net of $0.3 million of capitalized borrowing costs, compared to $1.6 million for the three months ended September 30, 2023. Excluding the impact of capitalized borrowing costs, finance costs increased by $4.0 million compared to the three months ended September 30, 2023. The increase was driven primarily by higher interest expense on long-term debt, due to higher average debt outstanding during the third quarter of fiscal 2024 relating to borrowings made under the Company’s senior the Company’s senior revolving credit agreement (the “Revolving Credit Agreement”), its loan agreement entered into with Investissement Québec (the “IQ Loan”), its loan agreement entered into with the Strategic Innovation Fund of the Government of Canada the (“SIF Loan”), its loan agreement entered into with Finalta Capital and Caisse de dépôt et placement du Quebec (the “Finalta-CDPQ Loan Agreement”), its other loan agreement with Investissement Québec under the ESSOR program (the “ESSOR Loan”) and its financing with respect to a credit facility to finance the Company’s accounts payable related to goods or services purchased in the normal course of its operations (the “Supplier Credit Facility”), non-cash interest (including interest paid in kind with respect to the convertible debentures issued by the Company in July 2023 (the “Convertible Debentures”)) and accretion expense, and an increase in interest costs related to lease liabilities, partially offset by lower financing costs related to the Convertible Debentures and non-convertible debentures issued by the Company in July 2023 (the “Non-Convertible Debentures”). Finance charges for the three months ended September 30, 2024 included non-cash charges of $5.6 million related to interest paid in kind with respect to the Convertible Debentures and accretion expense.

For the nine months ended September 30, 2024, finance costs increased by $24.8 million, from $11.1 million for the nine months ended September 30, 2023, to $35.9 million for the nine months ended September 30, 2024. Finance costs for the nine months ended September 30, 2024 were net of $1.1 million of capitalized borrowing costs, compared to $4.8 million for the nine months ended September 30, 2023. Excluding the impact of capitalized borrowing costs, finance costs increased by $21.1 million compared to the nine months ended September 30, 2023. The increase was driven primarily by higher interest expense on long-term debt, due to higher average debt outstanding during the nine months ended September 30, 2024 relating to borrowings made under the Revolving Credit Agreement, the IQ Loan, the SIF Loan, the Finalta-CDPQ Loan Agreement, the ESSOR Loan and the Supplier Credit Facility, non-cash interest (including interest paid in kind with respect to the Convertible Debentures) and accretion expense, and an increase in interest costs related to lease liabilities, partially offset by lower financing costs related to the Convertible Debentures and Non-Convertible Debentures issued in July 2023. Finance charges for the nine months ended September 30, 2024 included non-cash charges of $16.6 million related to interest paid in kind with respect to the Convertible Debentures and accretion expense.

Foreign Exchange Loss (Gain)
Foreign exchange loss (gain) relates primarily to the revaluation of net monetary assets denominated in foreign currencies to the functional currencies of the related Lion entities. For the three months ended September 30, 2024, the foreign exchange gain was $1.6 million, compared to a foreign exchange loss of $2.9 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, the foreign exchange loss was $1.9 million, compared to a foreign exchange gain of $0.1 million for the nine months ended September 30, 2023.The change in foreign exchange loss (gain) related primarily to the impact of changes in foreign currency rates (impact of changes in the Canadian dollar relative to the U.S. dollar).

Change in Fair Value of Conversion Options on Convertible Debt Instruments
For the three and nine months ended September 30, 2024, change in fair value of conversion options on convertible debt instruments resulted in a gain of $4.5 million and $27.8 million, respectively, compared to a gain of $3.4 million for both the three and nine months ended September 30, 2023, related to the revaluation of the conversion options on the Convertible Debentures issued in July 2023 resulting mainly from the decrease in the market price of Lion equity as compared to the previous valuations.

Change in Fair Value of Share Warrant Obligations
For the three and nine months ended September 30, 2024, the change in fair value of share warrant obligations resulted in gains of $3.1 million and $23.2 million, respectively, compared to gains of $0.2 million and $11.9 million, respectively for the three and nine months ended September 30, 2023, related to the Specific Customer Warrants, the public and private Business Combination Warrants, the 2022 Warrants, and the July 2023 Warrants, and resulting mainly from the decrease in the market price of Lion equity as compared to the previous valuations.

Net Loss
The net loss of $33.9 million for the three months ended September 30, 2024 as compared to the net loss of $19.9 million for the same period prior year was mainly due to the higher gross loss and higher finance costs, partially offset by the impact of the reduction in administrative and selling expenses as well as higher gains related to non-cash decrease in the fair value of share warrant obligations and the conversion options on convertible debt instruments.

The net loss of $74.9 million for the nine months ended September 30, 2024 as compared to the net loss of $47.2 million for the same period prior year was mainly due to the higher gross loss and higher finance costs, partially offset by the impact of the reduction in administrative and selling expenses as well as higher gains related to non-cash decrease in the fair value of share warrant obligations and the conversion options on convertible debt instruments.

Basis of Presentation
Refer to note 2 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 which also indicates the existence of material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Based on the current assessment of management, it is not certain that cash and forecasted cash flows from operations will be sufficient to meet the Company’s obligations coming due over the next twelve months, and, as a result, the Company’s ability to continue as a going concern is dependent on, among other things, its ability to raise additional funds in order to meet its capital requirements and satisfy its obligations as they become due (such as upcoming interest payment obligations under, and repayment at maturity of, certain of its debt instruments), including in connection with the expiration of the covenant relief period (as defined below) on November 15, 2024 and/or the maturity of the Finalta-CDPQ Loan Agreement on November 30, 2024. The Company expects that it will need to negotiate further amendments or concessions or waivers to agreements with the holders of its debt instruments in connection with the expiry of the covenant relief period and upcoming maturity of the Finalta-CDPQ Loan Agreement. See section 2.0 of the Company’s MD&A entitled “Basis of Presentation” for additional information.

Conference Call
A conference call and webcast will be held on November 6, 2024, at 5:30 p.m. (Eastern Time) to discuss the results. To participate in the conference call, please dial (404) 975-4839 or (833)-470-1428 (toll free) using the Access Code 946933. An investor presentation and a live webcast of the conference call will also be available at www.thelionelectric.com under the “Events and Presentations” page of the “Investors” section. An archive of the event will be available for a period of time shortly after the conference call.

Financial Report
This release should be read together with the 2024 third quarter financial report, including the unaudited condensed interim consolidated financial statements of the Company and the related notes as at September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023, and the related management discussion and analysis (“MD&A”), which will be filed by the Company with applicable Canadian securities regulatory authorities and with the U.S. Securities and Exchange Commission, and which will be available on SEDAR+ as well as on our website at www.thelionelectric.com. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the MD&A.

Non-IFRS Measure and Other Performance Metrics
This press release makes reference to Adjusted EBITDA, which is a non-IFRS financial measure, as well as other performance metrics, including the Company’s order book, which are defined below. These measures are neither required nor recognized measures under IFRS, and, as a result, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Lion compensates for these limitations by relying primarily on Lion’s IFRS results and using Adjusted EBITDA and order book on a supplemental basis. Readers should not rely on any single financial measure to evaluate Lion’s business.

Adjusted EBITDA
“Adjusted EBITDA” is defined as net earnings (loss) before finance costs, income tax expense or benefit, and depreciation and amortization, adjusted to exclude restructuring costs, share-based compensation, change in fair value of conversion options on convertible debt instruments, change in fair value of share warrant obligations, foreign exchange (gain) loss and transaction and other non-recurring expenses. Lion uses adjusted EBITDA to facilitate a comparison of the profitability of its business on a consistent basis from period-to-period and to provide a further understanding of factors and trends affecting its business. The Company also believes this measure is useful for investors to assess the Company’s profitability, its cost structure and its ability to service debt and to meet other payment obligations. However, readers should be aware that when evaluating Adjusted EBITDA, Lion may incur future expenses similar to those excluded when calculating Adjusted EBITDA. In addition, Lion’s presentation of these measures should not be construed as an inference that Lion’s future results will be unaffected by unusual or non-recurring items. Readers should review the reconciliation of net earnings (loss), the most directly comparable IFRS financial measure, to Adjusted EBITDA presented by the Company under section 12.0 of the Company’s MD&A for the three and nine months ended September 30, 2024 entitled “Results of Operations – Reconciliation of Adjusted EBITDA.”

Order Book
This press release also makes reference to the Company’s “order book” with respect to vehicles (trucks and buses) as well as charging stations. The Company’s vehicles and charging stations order book is determined by management based on purchase orders that have been signed, orders that have been formally confirmed by clients, or products in respect of which formal joint applications for governmental programs, subsidies or incentives have been made by the applicable clients and the Company. The order book is expressed as a number of units or a total dollar value, which dollar value is determined based on the pricing of each unit included in the order book as further explained under “Pricing” in section 9.0 of the MD&A entitled “Order Book”. The vehicles included in the vehicle order book as of November 6, 2024 provided for a delivery period ranging from a few months to the end of the year ending December 31, 2028, with substantially all of such vehicles currently providing for deliveries before the end of the year ending December 31, 2025, which corresponds to the latest date by which claims are required to be made according to the current eligibility criteria of the Federal Infrastructure Canada’s Zero Emission Transit Fund “ZETF” program, unless otherwise agreed by Infrastructure Canada. In addition, substantially all deliveries are subject to the granting of subsidies and incentives with processing times that are subject to important variations. There has been in the past and the Company expects there will continue to be variances between the expected delivery periods of orders and the actual delivery times, and certain delays could be significant. Also, there has been in the past and the Company expects there will continue to be variances in the eligibility criteria of the various programs, subsidies and incentives introduced by governmental authorities, including in their interpretation and application. Such variances or delays could result in the loss of a subsidy or incentive and/or in the cancellation of certain orders, in whole or in part. In addition, the Company’s current financial position as well as the material uncertainty as to its ability to continue as a going concern is likely to increase some or all of the risks relating to the Company’s order book. See “Increased Risks relating to Order Book” under section 9.0 of the MD&A entitled “Order Book.”

The Company’s presentation of the order book should not be construed as a representation by the Company that the vehicles and charging stations included in its order book will translate into actual sales. See the section below for a full description of the methodology used by the Company in connection with the order book and certain important risks and uncertainties relating to such methodology and the presentation of the order book.

About Lion Electric:
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric school buses. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.

Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.

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WASHINGTON, D.C. — By the terms in the Letters of Intent (LOI) signed this week, the Coalition for Green Capital (CGC) intends to use $175 million dollars of its EPA granted capital to drive more than a billion dollars of public-private investment in emissions-reducing transportation and building renovation measures.

CGC and Coventry Structured Investments (CSI) intend to drive a total of a billion dollars in clean energy deployment. CGC will make available a $100 million dollar line of credit to Coventry Structured Investments. Coventry’s current pipeline contains projects in the following states: California, Maryland, Rhode Island, and Texas to install energy efficiency and clean energy upgrades to commercial properties, which may include HVAC, lighting, solar, and water conservation measures.

CGC’s planned line of credit will be used by Coventry to finance portfolios of Commercial Property Assessed Clean Energy (C-PACE) loans which will then be refinanced in the capital markets. The line of credit can then be recycled multiple times over the life of the transaction, resulting in $1 billion of C-PACE financing that gives property owners access to low-cost, long-term, non-recourse financing for energy efficiency upgrades. This investment will result in improved air quality and environmental benefits for local communities.

Coventry, headquartered in Los Angeles, California, is a leading asset management and consulting firm specializing in niche debt and equity funding solutions, raising over $1.7 billion in capital through securitization platforms and mezzanine financing. It is also expanding its total assets under management to approximately $115 million through strategic acquisitions in the privately-rated renewable asset class. With the CGC partnership, Coventry will have up to $300 million in committed capital to deploy towards renewable opportunities. This increased liquidity of C-PACE funds will grow the availability of energy efficiency upgrades for buildings, with a significant number of these projects being deployed in low-income disadvantaged communities.

CGC and Highland Electric Fleets intend to invest approximately $250 million in total public-private investment to enable the lease or purchase of 1,300 electric vehicles. The money will be a combination of $75 million in loan from CGC, Highland equity capital, and EPA Clean School Bus Program grants and rebates to help Highland accelerate the deployment of approximately 1,300 electric vehicles, as well as charging infrastructure across multiple states including Florida, Georgia, Michigan, Missouri, North Carolina, Pennsylvania, and Texas. This support will also help bridge funds from federal tax credits and state and federal grant programs.

Headquartered in Beverly, MA, and active in 30 states and Canada, Highland Electric Fleets is the leading provider of electrification-as-a-service for school districts, governments, and fleet operators in North America. Highland is responsible for the first use of electric school buses in a commercial vehicle-to-grid (V2G) program. This investment is expected to lead to a significant reduction of 230,000 tons of CO2 emissions over the total 10-year life of the loan, with 60% of benefits reaching low-income and disadvantaged communities. By implementing V2G capabilities in certain locations, some of the electric vehicles will be able to discharge energy back to the grid for reliability when utilities need it and may also provide emergency support to buildings and community centers.

CGC received $5 billion in seed funding from the EPA’s National Clean Investment Fund (NCIF) to invest in public-private partnerships and create a network of self-sustaining green banks to accelerate the construction of a clean power platform. Today’s announcement of $1.2 billion in public-private investing demonstrates the power of collaboration, and the progress that CGC is making toward reaching its target of causing $21.1 billion in cumulative private-public investment in clean power projects within the first year of receiving funds.

CGC’s Chief Executive Officer Reed Hundt said, “These LOI’s are intended to lead to investments that will accelerate the transition from carbon to clean cheaply, quickly and inclusively, by, for and with communities. From improving air quality for students to providing capital for energy efficient upgrades to commercial properties, these projects are just the first of many to make clean, cheap power available to everyone, everywhere.”

CGC’s Chief Investment Officer Alfred Griffin said, “We’re committed to making investments that not only drive immediate change but also set the stage for long-term, scalable impact. Our goal is to create a ripple effect, where our investments lead to exponential growth in clean energy projects across the country. By unlocking more than $1.2 billion in clean energy investments, we’re not only helping communities reduce emissions and cut energy costs but also paving the way for significant job creation and sustainable economic development.”

CGC’s Senior Director of Impact and Equitable Investments William Barber III said, “These investments represent a transformative shift toward a cleaner, more equitable future for all communities. By empowering underserved populations with reliable and affordable energy, we are not only tackling the roots of climate change but also strengthening public health and creating new economic opportunities.”

CSI’s Founder and Managing Principal Rasool E. Alizadeh said, “CSI is ecstatic to partner with CGC in order to meet its public-private investment initiatives while continuing to grow and support the need for CPACE in the commercial real estate (CRE) market that has to date upgraded its properties with sustainable improvements in addition to adding intrinsic value. As the CRE marketplace continues to work through refinancings, this facility will create significant liquidity to allow projects to progress while focusing the benefits of the projects on core values to both companies.”

Highland Electric Fleets’ Chief Financial Officer Gaurav Dubey said, “With CGC’s $75 million commitment as part of a larger $250 million investment, Highland Electric Fleets is making the transition to electric fleets more accessible for municipalities nationwide. This effort is about more than reducing emissions and improving air quality; it’s about delivering meaningful benefits to the communities that need them most, including low-income and disadvantaged areas. By partnering with local community organizations, we’re not only creating cleaner, healthier transportation but also driving local job creation, supporting grid resiliency, improving public health, and building a brighter, more inclusive future for all.”

About Coalition For Green Capital:
The Coalition for Green Capital (CGC), doing business as the American Green Bank Consortium, is a 501(c)(3) chartered specifically to reduce greenhouse gas emissions and other forms of air pollution and redress climate and energy-related environmental injustice. Green banks are a proven finance model that uses public and philanthropic funds to mobilize private investment in renewable energy, energy efficiency, and other decarbonization technologies. For over a decade, the Coalition for Green Capital has led the Green Bank movement, working at the federal, state, and local levels in the U.S. and countries around the world. For more information, visit: https://coalitionforgreencapital.com.

About Coventry Structured Investments (CSI):
Coventry Structured Investments creates value for businesses and investors by crafting alternative funding solutions in esoteric situations that catalyze meaningful growth at marginal risk. We provide consulting services and alternative funding to businesses with unique or complex capital needs. To develop solutions that create growth, we immerse ourselves in our partners’ businesses. For more information, visit www.coventrysi.com or contact us at info@coventrysi.com

About Highland Electric Fleets:
Highland Electric Fleets is the leading provider of electrification-as-a-service for school districts, governments, and fleet operators in North America. Founded in 2019, Highland offers a unique suite of products that make it simple and affordable to upgrade to electric fleets today. Active in 30 states and Canada, Highland is responsible for the first use of electric school buses in a commercial vehicle-to-grid (V2G) program and the largest electric school bus project in the United States to date. To learn more, visit www.highlandfleets.com

The post Coalition for Green Capital Announces $1.2 Billion in Prospective Public-Private Investment to Accelerate the Cheap, Clean Power Platform appeared first on School Transportation News.

The wheels on the school bus may have kept turning for East End Bus Lines, but behind the scenes, the company was on a collision course with disaster.

What started as a desperate attempt to salvage a failing business ended with John Mensch pleading guilty in federal court to a multimillion-dollar bank fraud conspiracy that could put him behind bars for up to five years.

Mensch, a seasoned businessman known for running a network of school bus operations across Long Island, stood before U.S. District Judge Nusrat J. Choudhury earlier this month and admitted to orchestrating a complex scheme referred to as check-kiting that drained nearly $10 million from two unsuspecting financial institutions. The elaborate ruse, which spanned from 2017 through 2018, used East End Bus’ privileged banking status to create an illusion of liquidity, enabling Mensch to keep his business afloat even as it was financially sinking.

“Rather than take lawful steps to wind down his failing businesses, John Mensch resorted to criminality,” stated Breon Peach, the U.S. attorney for the Eastern District of New York. “He tricked two banks into advancing him millions of dollars that his company never had or ever had a chance of repaying.”

Mensch’s downfall began when East End Bus Lines, facing mounting debt and dwindling cash flow, leveraged a risky strategy to keep the fleet running. The company held expedited check-clearing privileges with multiple banks, allowing it to access deposited funds almost instantly—long before the banks could verify that the checks were backed by real money. Exploiting this loophole, prosecutors said Mensch engaged in a dizzying game of financial ping-pong, bouncing checks between East End’s various accounts to create a mirage of solvency.

Here’s how it worked: Mensch would draw checks from one of East End’s accounts, even though it was empty, and deposit them into a second account at a different bank. The receiving bank, unaware that the check was bound to bounce, would make the funds immediately available to East End. Before the check could clear—and the fraud exposed—Mensch would repeat the process, this time pulling bad checks from the second bank and depositing them back into the first.

It was a high-wire act of deception that fooled the banks into thinking there was real money in East End’s accounts. Each false transaction gave the company just enough breathing room to keep paying bills, covering salaries, and operating.

“This wasn’t just a simple case of writing a bad check,” said FBI Assistant Director James E. Dennehy. “This was a calculated, high-stakes scheme to defraud his own business partners,an elaborate fraud that siphoned millions of dollars out of legitimate institutions and into a sinking ship.”

As Mensch’s scheme grew bolder, so did the stakes. By the time it unraveled in September 2018, East End Bus Lines had racked up nearly $9.6 million in fraudulent transactions. But it wasn’t just the money. Mensch’s deceit temporarily stabilized an already shaky company, masking its precarious financial state from creditors, customers and employees.

The collapse was sudden and devastating. When the fraudulent trail came to light, the banks were left holding the bag, and Mensch’s empire crumbled almost overnight. The fallout has rippled through the Long Island community, with drivers, administrative staff, and school districts scrambling to adjust.

“This type of scheme doesn’t just hurt banks, it destabilizes the community,” said Patrick Freaney, special agent in charge for the U.S. Secret Service in New York. “The funds Mensch stole were used to cover up years of mismanagement, threatening the livelihoods of his employees and the safety of students who relied on East End’s services.”

As Mensch awaits sentencing, he faces not only the prospect of years behind bars but $9.6 million in restitution to the two victim banks. His actions also sparked a broader investigation into whether other executives at East End Bus Lines knew of or assisted in the fraud.

The case, led by the FBI and the U.S. Secret Service, has been hailed as a victory for the financial crimes unit of the U.S. Attorney’s Office for the Eastern District of New York. The prosecution, handled by Assistant U.S. Attorneys Anthony Bagnuola and Adam R. Toporovsky, is part of a broader effort to clamp down on white-collar crime across the region.

“This prosecution sends a clear message,” U.S. Attorney Peace concluded. “Those who exploit financial systems to prop up failing businesses and deceive the public will be held accountable.”

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ABBOTSFORD, B.C. – Gatekeeper Systems Inc. (‘Gatekeeper’ or the ‘Company’) (TSX-V:GSI) (OTC:GKPRF), a video and data solutions provider for public transportation and smart cities, announces select preliminary financial results for the fiscal fourth quarter and fiscal year ended August 31, 2024.

Based on preliminary unaudited information, the Company expects:

Revenue for the fiscal fourth quarter of 2024 to be approximately $11.5 million which compares to $7.3 million in the fiscal fourth quarter of 2023, representing an increase of approximately 57% and the highest fiscal quarterly revenue in the Company’s history; and

Revenue for the 2024 fiscal year to be approximately $37.6 million which compares to $27.8 million in the 2023 fiscal year, representing an increase of approximately 35% and the highest fiscal yearly revenue in the Company’s history.

The Company expects to report its audited financial and operating results for the fiscal year ended August 31, 2024, in December 2024. Accordingly, actual financial and operating results that will be reflected in the Company’s audited financial statements, when they are completed and publicly disclosed, may differ from these preliminary results.

About Gatekeeper Systems Inc.
Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, and Mobile Data Collectors to inter-connect public transportation assets within a Smart City ecosystem. The Company’s Platform-as-a-Service (PaaS) business model is centered around wirelessly enabled Mobile Data Collectors which forms the foundation of the Company’s data company evolution. www.gatekeeper-systems.com

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