How will the new base shelf prospectus affect Westport's ability to raise capital in the near term?

The new short‑form base‑shelf prospectus simply re‑authorises Westport’s “shelf‑registration” framework that expired on June 18, 2025. Once the prospectus is filed in its final form and cleared by the provincial securities commissions, the company can again tap the “shelf” to issue equity, debt or hybrid securities without having to prepare a separate registration statement for each offering. In practical terms, this restores Westport’s ability to raise capital on a “on‑demand” basis within weeks rather than months, giving it the flexibility to fund near‑term projects (e.g., new hydrogen‑combustion hardware, plant expansions, or strategic M&A) or to shore‑up liquidity if market conditions tighten.

From a market‑dynamic perspective, the re‑activation removes a short‑term funding constraint that had been priced into the stock since the expiry. Analysts and investors will likely view the reinstated shelf as a positive catalyst, reducing the risk premium on any upcoming equity or convertible‑debt raises. Technically, the removal of the capital‑raising bottleneck could support the price‑action in the next 4‑6 weeks; if Westport announces a sizable offering, we may see a modest pull‑back on the day of the filing (typical “sell‑the‑news” effect) followed by a rebound as the market digests the improved balance‑sheet outlook.

Trading implication: With the shelf back in place, expect Westport to have the capacity to execute a capital‑raising transaction quickly. Until the final prospectus is approved, the stock may trade in a narrow range (≈ CAD 2.00‑2.20) as investors await confirmation. A confirmed filing and subsequent offering announcement would be a trigger point—consider buying on any short‑term dip if the offering terms are favorable (e.g., limited dilution, attractive pricing) and positioning for a upside run as the company leverages the new capital to advance growth initiatives. Conversely, if the market perceives the raise as overly dilutive, a short‑position on the announcement day could capture the sell‑off. Overall, the reinstated shelf removes a near‑term financing hurdle, which should be viewed as a net positive for Westport’s liquidity and growth outlook.