PE Deals

Taiga Motors closes private placement of C$40.15m of debentures

Taiga Motors is a Montreal-based electric off-road vehicle manufacturer.

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  • Northern Private Capital accounted for C$25.15 million of the debentures, and Investissement Québec, the balance
  • Taiga Motors will use the proceeds for a range of priorities, including the production ramp-up of its all-electric, powersports vehicles
  • Taiga went public in 2021 through a merger with Canaccord Genuity Growth II Corp

Taiga Motors, a Montreal-based electric off-road vehicle manufacturer, has closed a private placement, raising C$40.15 million of secured convertible debentures.

Existing investor Northern Private Capital accounted for C$25.15 million of the debentures, and Investissement Québec, the balance.

Taiga received net proceeds of around C$36 million after payment of transaction-related fees and expenses. It will use the proceeds for a range of priorities, including the production ramp-up of its all-electric, powersports vehicles.

“The capital from this investment will facilitate Taiga’s ability to scale its production and deliver our award-winning electric powersport vehicles to customers that have been eagerly waiting for their Taiga vehicles.” said Sam Bruneau, chief executive officer and co-founder of Taiga Motors, in a statement.

Taiga has granted Northern Private Capital an option to subscribe for an additional debenture before April 27, with a principal amount of up to C$5 million.

Each debenture will be convertible, at the holder’s option, into common shares at a conversion price of C$3.25 per share at any time before the maturity date of 31 March 2028.

Taiga can redeem the debentures on or after the second anniversary of their initial issuance date, at par or 100 percent of the then principal amount, combined with accrued interest. This is subject to the 20-trading day volume weighted average price of the common shares on TSX is not less than 150 percent of the conversion price.

The debentures will be subject to a hold period of four months and one day following the closing date.

Taiga Motors went public in 2021 through a merger with Canaccord Genuity Growth II Corp,
a special purpose acquisition company. Northern Private Capital and others invested C$100 million to the merger.

Based in Toronto, Northern Private Capital is a private equity firm focused on long-term investing in companies that utilize technology to disrupt industries and solve big problems.