Tentative for Immediate Release on
Friday, April 16, 2021
- The company in 2020 to now
- Great product technology with proprietary intellectual
property
- Growing partner strategies and organizational structure
- Looking forward to growth
CALGARY, AB, April 16, 2021 /CNW/ - Exro Technologies
Inc. (TSXV: EXRO), (OTC: EXROF) (the "Company" or "Exro"), a
clean technology company which has developed a new class of power
electronics for electric motors and batteries is pleased to provide
its annual shareholder letter from Chief Executive Officer of Exro,
Sue Ozdemir.
Dear fellow shareholders,
A sincere thank you to all of you for your enduring support.
Exro has transformed over the past eighteen months and the
developments by our team are nothing short of outstanding. The past
year has presented us all with many new challenges but being
surrounded by so many great people has been a continuous source of
inspiration to tackle those challenges head on.
In 2020, we began to implement a business strategy around the
surging electric mobility markets by building upon the success of
our electric bike application. The focus began by building a broad
pipeline of partners to demonstrate versatility of our technology
in operating applications. These valued partnerships led to
critical validations of our product roadmap to commercialization,
and a surge in talent joining the Exro team. We grew our headcount
to over 30 and brought on new executive leadership and board
directors from General Electric, KSR international, Ford Motor
Company, General Motors and Audi. We also opened an Innovation
Centre in Calgary and raised
approximately $57 Million CAD in
capital.
Our team is executing against our business plan and as we work
to move our technology from development into commercialization, it
takes time to complete thorough testing and get a validated product
to our partners. We are building our future, and we don't want to
skip a step or leave any stone unturned. Our strategic plan
involves continued development of our patents, deploying validated
technology, and commercializing for a profitable future. Exro is on
track to drive our plan forward and bring something new to these
emerging markets by optimizing the power within electric
applications. We are dedicated to the mission of changing the way
the world looks at energy.
As you look at our company in 2021, I trust you are as excited
as I am about our future. Our team is driven, focused, and proud.
We have a strong balance sheet and available working capital
necessary to continue to innovate and execute. Exro aims to
continue to grow by incorporating the principals of innovation,
customer excellence, organizational design, and financial
acumen.
Disciplined Innovation
Our research and development ("R&D") is delivering a
technology that is a step-change in the marketplace. This is a
necessary growth element for the market to expand and bridge the
gap for modern solutions like electric vehicles. Our first target
market of mobility applications is a booming industry that is still
in its infancy. As government regulations globally set standards
for net zero carbon emissions, mobility manufacturers are looking
for technology that will help to deliver the required performance
in a cost-effective platform.
Our inaugural product, the Coil DriverTM does
just that. Formerly our ETr product, this technology has evolved
more than just by name. The Coil DriverTM represents
integration of our validated coil switching patents into a new
topology of inverter. It enables intelligent control of multiple
torque profiles in a single motor completely through the inverter.
Originally, the ETr was a separate module and now by integrating it
on an inverter platform, we are enabling system optimization
through a cost-effective motor controller. Our Coil
DriverTM platform currently includes four standard power
ratings of 48V, 100V, 400V, and 800V.
Our second product, the Battery Control System ("BCS") for
energy storage enables intelligent control of the cells within a
battery. Originally the Intelligent Battery Management System, this
technology was in R&D for many years, and as the Coil
DriverTM technology evolved from the initial
vision, so too has this product. It started with a deep dive into
artificial intelligence for battery management systems, and after
recognizing the recent topology innovation from the Coil
DriverTM, we realized there was synergy between how you
control coils and how you control the cells within a battery. That
is when we shifted to a product strategy around the innovative
topology and the software to enable more control. In December of
2020, we completed first validation of our BCS, which was the first
step towards commercialization. We are on schedule for the BCS
pilot to emulate grid performance and deliver our first stationary
energy storage solution by end of 2021.
Delivering great technology with a quality product to the
marketplace will require disciplined innovation: discipline to
accurately validate, thoughtfully commercialize, and deliver a
great innovation to the markets.
A New Brain
Like the human brain is a complex part of the human body that is
critical to control of the body, an inverter is a complex part of a
power system that is also critical to control of the system. A key
barrier to bypass some of that complexity is to integrate with
optimized motors to deliver performance that is otherwise not
possible.
You must protect your brain at all costs, and we view protecting
our inverter intellectual property in that same light. We have a
portfolio of proprietary intellectual property that includes a
combination of patents and trade secrets that provide us a
protected competitive advantage. Our solutions are innovative,
first to market, and support a cost-effective value proposition to
our target markets.
Exro currently has 25 granted patents and nine patents pending
globally. These patents represent a combination of hardware and
software systems that enable the innovation behind our unique coil
switching and battery control technology. In the past 12
months, the Company has made progress on 10 patents that were moved
to granted status in additional regions. The nine patents pending
include some recent developments for both the Coil
DriverTM and BCS innovations.
We have advanced our patent strategy after bringing in a new
team of engineers and innovators that have developed completely new
designs that have strengthened the foundation around our core
technologies. All intellectual property ("IP") developed by
inventors while at Exro is fully owned by the Company and we are
not reliant on any external, third party IP. We will continue to
drive innovation in power electronics and add more patents and
trade secrets to our portfolio.
Partner Strategy
There is never a guarantee to the execution of a commercial
plan, but we are confident in the road ahead. We have a robust
pipeline of partners and are engaged in customer conversations
which are the foundation to our target milestones for this year. In
2020, we had set the target to create versatile partnerships across
different applications and segments to validate our technology. For
2021, we have a target to sign additional commercial partnerships
and a strategic partner that fit alongside our new partner
model.
As our company continues to grow and evolve, so do our valued
partnerships. The new partner model includes four different types
of partners that will encompass our current product roadmap and
encourage continued versatility alongside new partners. The four
partnerships are:
- Development Partners
- Commercial Partners
- Strategic Partners
- Motor Partners
We will work with Development Partners to develop a technology
beyond a proof-of-concept stage to validation in a relevant
environment. The objective of this partnership will be to
demonstrate the technology in new segments and applications with
the intent of a future commercial product that will differentiate
our partners. An example of a Development Partnership we have today
would be Clean Seed as we develop our technologies to electrify the
next generation of agricultural seeders.
Commercial Partners are interested in becoming customers for
Exro's commercialized products but first require validated
integration of our technology within their application(s). In some
cases, this might require meeting highly regulated auto industry
standards. The objective of this kind of partnership is the
delivery of purchase orders for low-volume production of Exro
products after successful integration. An example of a Commercial
Partnership we have today would be LAND motorcycles, as we work
together to validate integration of the Coil
DriverTM in their District motorcycle.
Strategic Partners are focused on potential high-volume
production making use of our technology. This partner may start in
development phase and progress to operating application validation
for long term serial production. This partnership is ideal for
revenue models surrounding high-volume contracts, licensing, or
contract manufacturing.
Motor partners will be an integral part of accelerating the
delivery of our Coil DriverTM to market by enabling
system solutions for each segment of our product line. These
partners will work with us to develop an optimized motor to
integrate with our Coil DriverTM and provide a packaged
motor and inverter system solution we can deliver to specific
applications or market segments. An example of a Motor Partner we
have today would be TSA, where we work together to optimize a
heavy-duty traction motor to deliver alongside our Heavy-Duty Coil
DriverTM.
Here are our partnerships today within this model:
- Development Partners: Clean Seed and Templar Boats
- Motor Partners: HEINZMANN and Traktionssysteme Austria
("TSA")
- Commercial Partners: LAND E-Moto, Potencia Industrial, Aurora
Powertrains, Zero Motorcycles, SEA Electric
We're thankful to Motorino for all their support to develop our
technology and we are now transitioning to a new commercialization
strategy for the micro mobility markets. We believe this
partner model will not only give clarity as to what is the scope of
our current partnerships but also attract exciting new partnerships
in the future that will continue to develop our technologies and
grow our businesses together.
Right People, Right Roles
The progression of our organizational structure is a big piece
of building our future success. We will ensure that everyone who
joins Exro is committed to the mission and adopts our corporate
culture and values. We have been able to recruit some really
talented people that have backgrounds in engineering, sales,
marketing, finance, and more. Beyond our management team, our
company has grown from seven employees when I joined to 35
employees today.
Operational Excellence
Our long-term vision is a focus on licencing or manufacturing
partnerships that allow us to supply high-volume customers. We have
also been working hard at building out our low-volume manufacturing
facility which will support our projected growth in the near
future.
We recently announced our plans to open a new low-volume
manufacturing facility in Calgary
that will meet the highly regulated automotive standards so we can
deliver our Coil DriverTM product line to the
passenger electric vehicle markets. While this is important to
start on now because of the long lead time it will take to get our
Coil DriverTM validated to these standards, it is not
the only market we are planning for this year. Less regulated
markets, like micro-mobility and recreational, we can continue to
support the product development from our current Innovation Centre
in Calgary.
We're also preparing to increase our presence in the US in the
near future. To this end we've set up a US subsidiary now and are
planning for growth in the US markets for both the Coil
DriverTM and BCS product roadmaps so Exro can be
ready for Buy America.
Enterprise Value
Our technology is innovative, patented and in demand by our
addressable markets. As we continue to execute, and our technology
impacts the power electronics market, we will begin to see a shift
in industry standards for both electric vehicles and energy storage
solutions. Electric vehicles and energy storage solutions will
become more cost effective and expand their performance
capabilities.
Right now, the focus is on building the backlog for our products
and establishing a long-term pipeline. Once we have established a
foundation in mobility applications, we will begin to expand the
total addressable markets for the Coil
DriverTM into other segments including industrials
or renewables and other regions like Asia and Europe.
We also continue to explore ways to increase our capital markets
exposure and broaden our investor reach. A key initiative underway
for 2021 is an up list to the Toronto Stock Exchange ("TSX").
Although we cannot guarantee that this initiative will be
successful, a TSX listing will be important to enhance liquidity
and reduce investment barriers for both institution and retail
investors in our stock.
Expectations looking forward
Looking forward to our growth plans this year, you can expect
that we will remain focused on completing our milestones, which you
can always reference in our corporate deck here.
I am genuinely excited about our future. Customer demand is
strong, and despite the challenges the past year has thrown at all
of us, our team remained committed and made incredible progress
under the COVID guidelines to execute for our customers and
partners. It takes a special team to overcome the adversity, adapt,
and deliver a new technology to market and I am so thrilled we have
put that together. I can't wait to see what we can accomplish
moving forward. The Exro in front of you today is one that will be
a market leader in the future.
Thank you for your enduring support and investment in our
company.
Sue Ozdemir
Chief Executive Officer
About Exro Technologies Inc.
Exro is a clean technology company pioneering intelligent
control solutions in power electronics to help solve the most
challenging problems in electrification. Exro has developed a new
class of control technology that expands the capabilities of
electric motors, generators, and batteries. Exro enables the
application to achieve more with less energy consumed.
Exro's advanced motor control technology, the Coil
DriverTM, expands the capabilities of powertrains
by enabling two separate torque profiles within a given motor. A
major advancement in the sector, dynamic motor configuration
enables efficiency optimization for each operating mode resulting
in reduction of energy consumption. The controller automatically
selects the appropriate configuration in real time so that power
and efficiency are intelligently optimized.
For more information visit our website at www.exro.com.
LinkedIn
https://www.linkedin.com/company/exro-technologies-inc
Twitter https://twitter.com/exrotech
Facebook https://www.facebook.com/exrotech/
ON BEHALF OF THE BOARD OF DIRECTORS
Sue Ozdemir, Chief Executive
Officer
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be
taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties and other factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's filings with
Canadian securities regulators, that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the assumptions and factors used
in preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Tags: Electric vehicles, electric cars, sustainability,
inverters, controllers, control technology, mobility, powertrain
systems, Coil Driver, electromechanical drives, recreational
vehicles.
Targeting List: Technology
View original content to download
multimedia:http://www.prnewswire.com/news-releases/exro-technologies-annual-shareholder-letter-301270332.html
SOURCE Exro Technologies Inc.