Zenn Motor loses $2.6 million in third quarter

Zenn Motor EEStor investment underscores a $5M bet on advanced energy storage and battery technology for electric vehicles and renewable energy, amid revenue declines, Ontario rebate exclusion, and TSX Venture gains.

Electric car maker Zenn Motor Company Inc. reported a third-quarter loss of $2.6 million as revenue fell almost 70 per cent.

The loss amounted to eight cents per share share for Zenn Motor during the period, up from a loss of $1.9 million, or six cents per share, for the same period a year ago. Revenue was $300,267, down from $962,325 a year earlier.

The Toronto-based company said it invested $5 million (US) in EEStor Inc., raising its stake in the developer and maker of energy storage devices to 10.7 per cent.

"This investment gives our shareholders a stake in the many potential mass applications of EEStor's technology, including portable consumer electronics, (and) improving the performance of renewable energy sources such as wind and solar generation," CEO Ian Clifford said in a release.

The current Zenn vehicle — an acronym for Zero Emission No Noise — is intended for urban commuters and use in places such as resorts, gated communities, airports and campuses.

Zenn was excluded from a recently announced Ontario electric car rebate program, which offers up to $10,000 when buying plug-in hybrid and battery electric vehicles, because Zenn Motor cars have not been deemed safe for highway use.

The three-door hatchback, made in St-Jerome, Que., can reach a speed of 40 kilometres an hour and has a driving range of up to 80 kilometres.

Zenn shares gained 26 cents to $5.25 on the TSX Venture Exchange.

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