CALGARY, Alberta (June 15, 2022) – Exro Technologies Inc. (TSX: EXRO, OTCQB: EXROF) (the “Company” or “Exro”), a leading clean technology company that has developed a new class of power electronics for electric motors and batteries, is issuing this statement in response to the lawsuit filed by ePropelled against the Company on January 21, 2022.
Exro has filed a petition with the United States Patent and Trademark Office for inter partes review (“IPR”) of U.S. Patent No. 7,382,103 (“the ’103 patent”), assigned to patent owner ePropelled, Inc. An inter partes review is used to challenge the patentability of claims in a U.S. patent on the basis of prior art, which is evidence that an invention was already known prior to filing for patent protection. The filing follows an in-depth analysis by an independent expert in motors, and concludes that ePropelled’s ’103 patent, which Exro is alleged to have infringed is itself invalid.
The independent analysis was conducted by a professor of Electrical Engineering and Computer Science and Mechanical Engineering at Massachusetts Institute of Technology (MIT) who is an expert in the field of power electronics. The expert holds Bachelor of Science, Master of Science, Master of Science in Electrical Engineering, and Doctor of Philosophy degrees from MIT, where he has taught since 1993. His work has been published extensively in scholarly journals. The expert has also received numerous awards and accolades for his research and teaching and is the holder of more than 20 patents for energy conversion controls and power systems. The results of this independent review are included in Exro’s filed IPR IPR2022-01154.
Based on the results of the independent review, Exro asserts that, unlike the patents held by Exro, there are numerous prior art references that demonstrate ePropelled's ’103 patent is invalid. The cancellation of the ’103 patent would render ePropelled's infringement claims moot. As such, the Company anticipates that following the completion of the IPR, the ’103 patent assigned to ePropelled, Inc. will be cancelled, leading to an immediate resolution of ePropelled's claim and a full vindication of Exro.
In addition to filing the IPR, Exro also filed a separate defamation lawsuit against ePropelled Inc. on February 15, 2022, in Middlesex County Superior Court in the Commonwealth of Massachusetts. This litigation concerns a defamatory statement about Exro in a press release issued on January 24, 2022, and the Company is actively engaged in upholding its reputation, the validity of its technology and the protection of its shareholders.
“We are confident in our ability to defeat the claims made against us and this IPR filing will affirm the fact that ePropelled’s patent is invalid, making it impossible for any entity to infringe on it,” said Exro CEO Sue Ozdemir. “Our focus remains on our continued successful product development and commercialization with our partners. While we vigorously defend our technology and our reputation against this unmerited patent infringement lawsuit, we are undistracted from the execution of our business strategy and our commitment to deliver innovative next-generation technology to the electric mobility market.”
About Exro Technologies Inc.
Exro is a clean technology company pioneering intelligent control solutions in power electronics to help solve the most challenging problems in electrification. Exro has developed a new class of control technology that expands the capabilities of electric motors, generators, and batteries. Exro enables the application to achieve more with less energy consumed.
Exro’s advanced motor control technology, the Coil Driver™, expands the capabilities of electric powertrains by enabling intelligent optimization for efficient energy consumption. Exro is working with many partners from all over the world to bring their technology to the electric mobility industries and beyond.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at www.exro.com/investors
Visit us on social media @exrotech.
Investor inquiries: email@example.com
Canada investors: Jake Bouma at 604-317-3936
United States investors: Vic Allgeier at 646-841-4220
Media inquiries: firstname.lastname@example.org
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by the Company with the Canadian securities regulators, including the Company's annual information form for the financial year ended December 31, 2021, and financial statements and related MD&A for the financial year ended December 31, 2021, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.