Taiga Motors Corporation (TSX:TAIG) et al., a Montréal, Québec-based manufacturer of the world’s first mass-production ready, all-electric powersports vehicles, obtained CCAA protection on July 10.

To date, Taiga has introduced one model of an all electric snowmobile, as well as two models of all electric personal watercraft.

Taiga has sustained losses since 2022 and has never been profitable since its inception in 2015, which management attributes to intensive capital investments required to manufacture the watercraft and the snowmobiles and difficulties in generating revenue due to a lack of sales distribution channels. Nevertheless, the company grew, employing over 250 people by the end of 2022, and gained international recognition, including being named in TIME’s Best Inventions of 2022.

The company has been actively reducing its cost structure and has been seeking various alternatives to fund its operations and reduce operating burn, including by temporarily pausing its vehicle production and reducing its workforce.

Deloitte was appointed as restructuring advisor in April 2024, and a SISP was commenced in May 2024, but no successful bids were received. After considering all available alternatives with its legal and financial advisors, the company filed for CCAA protection with a view to continuing the SISP and implementing one or more transactions for Taiga’s business and assets.

Deloitte is the monitor.

EDC is the proposed DIP lender.

Counsel is Norton Rose Fulbright for Taiga, Fasken for the monitor and Stikeman Elliott for EDC. EY is financial advisor to EDC.