Westport Announces $6.5 Million Milestone Payment From Light-Duty Divestiture

Executive Summary

• Westport Fuel Systems received an escrow payment of $6.5 million (€5.5 million) tied to the previously announced sale of its Light‑Duty segment.
• The payment was triggered by the achievement of a defined post‑closing milestone under the divestiture agreement.
• Management indicated that additional milestone payments are expected, further strengthening Westport’s cash position and supporting ongoing operations and strategic initiatives.

Key Details

• Payment Amount: $6.5 million (approximately €5.5 million) received in escrow.
• Trigger: Achievement of a defined post‑closing milestone specified in the Light‑Duty divestiture sale agreement.
• Purpose: Non‑dilutive capital to bolster Westport’s cash balance and fund ongoing operations and strategic initiatives.
• Future Payments: Additional milestone‑based payments are anticipated as remaining transaction phases are completed.
• Strategic Impact: Enhances liquidity, supports operational efficiency improvements, and underpins the company’s continued execution of its divestiture strategy.

Notable Quotes

“This milestone payment reflects continued progress in the post‑closing steps of our Light‑Duty business divestiture,” said Elizabeth Owens, Chief Financial Officer at Westport. “While additional payments are expected as the transaction phases are completed, this interim payment strengthens our cash position today to support ongoing operations and our strategic initiatives.”