E AUTOMOTIVE INC. closes C$135.7 million initial public offering

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TORONTO, Nov. 10, 2021 /CNW/ - E Automotive Inc. d/b/a E Inc. ("E Inc." or the "Company") (TSX: EINC), which goes to market under the brands EBlock and EDealer, announced today the successful closing of its previously-announced initial public offering (the "Offering") of 5,900,000 common shares at a price of C$23.00 per share for gross proceeds of C$135,700,000. The Offering was upsized from an initial size of C$125,000,000 as a result of excess demand.

The common shares of the Company began trading on the Toronto Stock Exchange on November 3, 2021 under the symbol "EINC".

E Inc. anticipates using the net proceeds from the Offering to strengthen its balance sheet, increase its working capital and further its growth initiatives.

The Offering was made through a syndicate of underwriters led by Canaccord Genuity Corp., CIBC Capital Markets and National Bank Financial Inc. as lead underwriters, and Scotiabank, Eight Capital, ATB Capital Markets Inc. and Laurentian Bank Securities Inc. (collectively with the lead underwriters, the "Underwriters").

The Underwriters have also been granted an over-allotment option (the "Over-Allotment Option") to purchase up to an additional 885,000 common shares at a price of C$23.00 per share for additional gross proceeds of C$20,355,000 if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised for a period of 30 days from today.

The Offering was completed pursuant to the Company's supplemented PREP prospectus dated November 2, 2021 (the "Prospectus") and filed with the securities regulators in each of the provinces and territories of Canada. A copy of the Prospectus is available under E Inc.'s SEDAR profile at www.sedar.com.

Goodmans LLP acted as legal counsel to E Inc. and Miller Thomson LLP acted as legal counsel to the Underwriters.

No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act"), as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the U.S. Securities Act). Accordingly, the securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registrations requirements of the U.S. Securities Act and applicable state securities laws.

About E Inc.

E Inc.'s mission is to optimize the online vehicle buying, selling, and management experience for automotive dealers and consumers. E Inc. has a digital platform (the "Platform") that provides automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers' digital retailing and inventory management. Access to E Inc.'s Platform is complemented by ancillary service offerings to assist dealers with supplementary auction-related needs, including driving consumer traffic to their digital properties and optimizing other business processes. E Inc.'s digital wholesale marketplace goes to market under the brand EBlock, and E Inc.'s digital retail suite of products goes to market under the brand EDealer.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation that reflects management's current expectations regarding future events. Such information includes, but is not limited to, statements related to the expected use of net proceeds from the Offering and the exercise of the Over-Allotment Option. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Prospectus. Actual results could differ materially from those projected herein. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

SOURCE E Automotive Inc.

Andy Bohlin, Chief Financial Officer, Tel: [phone]