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Lion Electric Merges With Northern Genesis Acquisition

Lion Electric Co., a company in which Power Sustainable Capital, a wholly owned subsidiary of Power Corporation of Canada (POW.TO), said that it plans to merge with Northern Genesis Acquisition Corp.

Upon closing of the deal, a wholly owned subsidiary of Lion will merge with Northern Genesis (NGA), and as a result Lion is expected to be listed on the New York Stock Exchange under the new ticker symbol "LEV".

The proposed deal also includes a US$200 million committed private placement of common shares of the combined company. The pro forma implied market capitalization of the combined company is US$1.9 billion.

Power Sustainable currently holds a 44.2% equity interest in Lion and certain call rights to acquire additional shares from certain existing shareholders of Lion.

Power Sustainable is expected to participate in the private placement for an additional US$17 million and will pro forma hold 31.4%, on a diluted basis, of the combined company's common equity after closing of the proposed transaction.

In connection with the proposed deal, the combined company is expected to receive about US$500 million of cash proceeds, net of transaction costs, comprised of US$200 million from the private placement and about US$320 million of cash held in trust by Northern Genesis, assuming no redemptions from Northern Genesis public stockholders.

Completion of the proposed transaction is expected to occur in the first quarter of 2021.

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