A few days before its annual meeting, the young Quebec electrification company Taiga, whose future is uncertain, sees its chief financial officer – its finance expert – leave the ship to pursue his career under other skies.
The manufacturer of snowmobiles and electric watercraft, supported by the provincial and federal governments, has not yet found a successor to Eric Bussières, who will remain in office until July 12.
Seeing a young company in turmoil lose an experienced financial specialist like Mr. Bussière never bodes well, believes professor in the management department of McGill University, Karl Moore.
“He’s the kind of experienced manager that bankers and investors appreciate because they trust his judgment,” observes Mr. Moore. If he says it’s correct, it’s because it is. It is possible that he has an idea of the coming storm and wants to leave beforehand. »
Before joining Taiga in November 2021, Mr. Bussières held several finance positions within Quebec multinationals such as Uni-Select and CAE for nearly three decades.
In his statement released by the company, Mr. Bussières discusses the work accomplished so far by the Quebec manufacturer, without however commenting on its future. The person who should succeed him must be appointed at a “later” date, underlines Taiga.
“We will continue to build on the solid foundation of financial rigor instilled throughout the organization during the initial production scale-up phase,” the CEO said. Samuel Bruneau.
The announcement didn’t seem to rattle investors. On the Toronto Stock Exchange Tuesday afternoon, the company’s shares rose 3.6 percent, or one cent, to 29 cents. That gave it a market value of just $9 million.
While its coffers are emptying, the manufacturer of snowmobiles and electric watercraft has already indicated that there is “significant uncertainty” over its future. At the end of the first quarter ending March 31, it only had $2.5 million left in cash. Financing possibilities seem non-existent.
“The company believes that it is unlikely that it will be able to obtain additional financing […] in the foreseeable future,” it warned, in its most recent quarterly report.
Export Development Canada agreed to lend an additional $5.25 million to Taiga last March. The company received a lifeline from Investissement Québec and Northern Private Capital on March 30, 2023. The investing arm of the Quebec government and the Toronto firm had agreed to lend it 40 million.