ELECTROVAYA’S GERMANY UNIT FILES FOR INSOLVENCY

Electrovaya Inc. says its Litarion subsidiary in Germany has begun insolvency proceedings as a result of a cash shortage that arose after its automotive customers took longer than expected to place large battery orders. Mississauga, Ont.-based Electrovaya says it doesn’t expect Litarion’s insolvency will affect the parent company’s ability to fulfil current and future customer orders. Among Electrovaya’s customers is Walmart Canada, which placed a $4.3 million order last year for drop-in lithium ion battery systems to power forklifts at a distribution centre. For the fiscal year ended Sept. 30, Electrovaya reported $11.3 million of revenue — down from $25.1 million in fiscal 2016 — and a loss of $27.2 million, more than double its year-earlier loss. Electrovaya fell 27 per cent Friday in Toronto to close at 42 cents.