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Powersports Business • December 2023 • 13

Taiga Motors Corporation recently announced that it has entered into a $ 15 million secured term loan agreement with Export Development Canada ( EDC ). The loan will support the company ’ s continued growth towards producing over 1,000 vehicles in 2023 .

The term loan bears interest on the drawn funds at the annual rate of the prevailing Canadian prime rate plus 5.00 % and provides for multiple advances over a ninemonth drawdown period , with the first draw being taken on October 4 , 2023 . The term loan matures on February 10 , 2028 .

Over the third quarter of 2023 , Taiga made important progress on ramping up operations , producing 365 Orca personal watercraft . This was a 105 percent increase over Q2 production and brought the total production in the first nine months of 2023 to 639 vehicles . Launched in August , the Orca Performance model has enabled the company to materially increase its production efficiency .

Despite initial hurdles in part availability affecting the start of production , the company recently achieved an important milestone , producing more than 50 vehicles per week . Starting in November , a production change-over was switched to snowmobiles .

“ EDC ’ s support is welcomed as Taiga expands deliveries of its award-winning electric personal watercraft and snowmobiles to customers in Canada , the United States , and eventually across the globe . The term loan allows added flexibility for Taiga to better manage its working capital ,” states Sam Bruneau , CEO and co-founder of Taiga .

The term loan also contains limited affirmative and negative covenants ( including certain financial covenants relating to current ratios and cashflows from operation ) and events of default . The incurrence of indebtedness and granting of security under the term loan is specifically permitted under the terms of the convertible debentures issued by Taiga in March and April 2023 .

The company recently reported its financial and operating results for the third quarter ending September 30 , 2023 . Taiga reported $ 4.2 million from the sale of 147 vehicles during the third quarter ending September 30 , 2023 , showcasing revenue growth of 222 % compared to the third quarter of 2022 .

Taiga ’ s production experienced a significant ramp-up with the introduction of the Orca Performance PWC model , engineered for manufacturing efficiency , utilizing a sheet molding composite for high-volume manufacturing and a sixth-generation tractive unit with greater part integration . As a result , Taiga has doubled its quarterly manufacturing capabilities .

“ The third quarter was another step towards establishing Taiga as a leader in powersport electrification . We launched the Orca Performance and with it , we were able to ramp up our production to double the prior quarterly throughput . The Orca Performance personal watercraft was designed for scalability in order for Taiga to leap forward in mass-market powersport electrification and drive mass adoption at a competitive price ,” Bruneau says . “ The next phase for us at Taiga is to continue to build on our production momentum … We ’ re also working hard to improve our supply chain , ramp up our TSP network and invest in marketing as we further grow our brand .”

During the quarter , Taiga continued to expand its Taiga Service Provider ( TSP ) network . As of September 30 , 2023 , Taiga ’ s TSP network included 31 locations to provide

deliveries and after-sales service across Canada and the United States . Taiga initiated deliveries in California , which resulted in the TSP network now covering top key boating and EV markets in Canada and the United States .

The company is now focusing on scaling its TSP network and driving sales . Taiga is also improving its production schedule to align with seasonal consumer retail timings . The Nomad snowmobile is expected to begin its production run imminently for the 2023 / 2024 winter season .

T he Taiga team celebrates producing the first 1,000 PWCs . Photo courtesy of Taiga

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