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by Mike Caswell

Three shareholders of Exro Technologies Inc., an all-but-defunct developer of electric motors and batteries, have filed a case in the Supreme Court of British Columbia over an acquisition that they say doomed the company. The shareholders claim that Exro made "delusional" revenue projections in promoting the deal. It later reported a small fraction of that revenue and made $500-million in writedowns, the shareholders complain.

The allegations are contained in a petition filed at the Vancouver courthouse on Tuesday, Nov. 4. The petitioners include Max Trojan and Mike Zienchuk, two Ontario men who held a combined 20 million shares of Exro, as well as a smaller shareholder from B.C. The men are seeking to have the case certified as a class action on behalf of all shareholders.

The events at issue go back to Jan. 30, 2024, when Exro said that it had entered a deal to acquire SEA Electric Inc., which was making a power system for commercial vehicles. Exro paid $332-million in shares and assumed $62-million in debt. In touting the deal, Exro said that SEA Electric had commitments from vehicle manufacturers such as Mack (Volvo) and Hino (Toyota), the petition states.

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