Facing Significant Economic Pressures And A Possible Nasdaq Delisting, Electric Vehicle Maker To Avoid Lordstown Motors Corp. Ride It announced on Tuesday that it will execute a 1:15 reverse stock split on May 24. The decision was approved by stockholders at an annual meeting on Monday.
The company’s reverse split is a strategic gamble aimed at complying with Nasdaq listing standards, while also favoring it. Foxconn Technology Co. Ltd. fxcofAn investor who recently hinted at the possibility of withdrawing a critical $170 million funding lifeline for the beleaguered EV maker, according to Reuters.
Lordstown reiterated its commitment to closing the Foxconn deal in Tuesday’s press release, but said there was no assurance it would close.
Lordstown said on Tuesday that since starting commercial production, it has built 56 units of its EV model, the Endurance, and delivered 18 of these to customers, including 12 since the end of April.
As of April 30, the company said it had approximately $165 million in cash, cash equivalents and short-term investments, reflecting a decrease of approximately $11 million from the quarter ended March 31.
If the company were to implement the split now, with shares trading at 29 cents, a share would be worth $4.35.
Ride Price Action: Shares of Lordstown Motors are trading 4.3% lower at 29 cents after data benzinga pro,
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