/NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA/

TORONTO, Dec. 23, 2021 /CNW/ - Intercap Equity Inc. ("Intercap") and its joint actors have acquired common shares in E Automotive Inc. d/b/a E Inc. ("E Inc.")  (TSX: EINC) and exercised warrants. This press release is being disseminated as required by National Instrument 62–103 – The Early Warning System and Related Take Over Bids and Insider Reporting Issuers in connection with the filing of an early warning report (the "Early Warning Report").

On December 22, 2021, Intercap purchased 18,826 common shares of E Inc. over the facilities of the Toronto Stock Exchange and exercised 2,307,695 warrants. The 18,826 common shares were acquired at a price of C$16.9988 per common share, for total consideration of C$320,019.41. The 2,307,695 warrants were exercised for a price of C$6.50 for total consideration of C$15,000,017.50.

Prior to the acquisition and warrant exercise, Intercap, together with its joint actors, beneficially owned, controlled or directed an aggregate of 27,326,035 common shares, 3,328,935 share purchase warrants, 3,593 deferred share units and 1,065,445 options to acquire common shares from other E Inc. shareholders, representing approximately 59.7% of the outstanding common shares of E Inc. on a non-diluted basis and approximately 64.6% on a partially diluted basis, assuming Intercap's exercise of its remaining warrants and options and vesting of Jason Chapnik's deferred share units.    

Following the acquisition and warrant exercise, Intercap, together with its joint actors, beneficially owns, controls or directs an aggregate of 29,652,556 common shares, 1,021,240 share purchase warrants, 3,593 deferred share units and 1,065,445 options to acquire common shares from other E Inc. shareholders, representing approximately 61.7% of the outstanding common shares of E Inc. on a non-diluted basis and approximately 64.7% on a partially diluted basis, assuming Intercap's exercise of its warrants and options and vesting of Jason Chapnik's deferred share units.

Since completion of E Inc.'s IPO, Intercap has purchased a total of 364,126 common shares of E Inc. in the open market.   

The equity interests of Intercap are beneficially owned, controlled or directed, directly or indirectly, by Jason Chapnik, Chairman and Chief Executive Officer of Intercap, and accordingly Jason Chapnik is considered to be a joint actor. Intercap may, depending on market or other conditions, increase or decrease its beneficial ownership, control or direction over, or exercise its current rights to acquire, common shares through market transactions, private agreements or otherwise.

Intercap's head office is located at 261 Davenport Road, Suite 200, Toronto, Ontario, M5R 1K3. E Inc.'s head office is located at 10 Lower Spadina Avenue, Suite 400 and Suite 500, Toronto, Ontario, M5V 2Z2.

An early warning report will be electronically filed by Intercap with the applicable securities commission in each jurisdiction where E Inc. is reporting and will be available on SEDAR at www.SEDAR.com.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

SOURCE E Automotive Inc.

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