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RIDE - Lordstown Motors News Story

$6.59 -0.7  -9.6%

Last Trade - 27/07/21

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £931.7m
Enterprise Value £507.6m
Revenue £n/a
Position in Universe 2657th / 7000

UPDATE 1-Lordstown Motors is 'evaluating strategic partners' in funding search

Mon 21st June, 2021 8:36pm
(Adds background on Lordstown Motors' financial problems,
changes dateline from DETROIT)
    By Ben Klayman
    LORDSTOWN, Ohio, June 21 (Reuters) - Electric vehicle
startup Lordstown Motors Corp  RIDE.O  is "evaluating strategic
partners" as part of its search for funding needed to stay in
operation, the company's executive chair, Angela Strand, said on
Monday.
    Lordstown Motors earlier this month warned it may not be
able to continue as a "going concern" if it cannot raise more
money to retool its factory in Lordstown, Ohio, for high-volume
production.  urn:newsml:reuters.com:*:nL3N2NQ431
    The company's shares were down 4% in late afternoon on
Monday, and are down 49% for the year to date.   
    Strand is acting as the company's chief executive while a
search is under way to replace Steve Burns, who left the company
earlier this month.  urn:newsml:reuters.com:*:nL3N2NW1EY
    Since the "going concern" warning, the company has tried to
allay worries by saying it was in talks with multiple parties to
raise funds. Before his exit, Burns said on a conference call
that Lordstown needed more capital and that production of the
Endurance truck this year would be half of prior expectations of
2,200 vehicles.  urn:newsml:reuters.com:*:nL3N2NQ431  urn:newsml:reuters.com:*:nL2N2NR1ZC  urn:newsml:reuters.com:*:nL2N2NB29B
    Lordstown Motors executives opened their assembly plant, a
former General Motors Co  GM.N  assembly plant, to investors and
reporters on Monday.
    Lordstown, which went public last year through a reverse
merger with a special-purpose acquisition company (SPAC), has
struggled with the launch of its Endurance pickup truck, and
with questions about governance.  urn:newsml:reuters.com:*:nL4N2F53DD  urn:newsml:reuters.com:*:nFWN2HE1FT
    Several EV startups over the past year have gone public via
mergers with SPACs, bypassing the rigorous scrutiny of a
traditional initial public offering process.
    In March, Lordstown's shares slumped after investment
research firm Hindenburg Research disclosed it had taken a short
position on the stock, saying the company had misled consumers
and investors about its preorders for the Endurance truck that
Lordstown initially said were worth $1.4 billion.  urn:newsml:reuters.com:*:nL4N2LA3DD
    The Ohio company subsequently said the orders were not
binding and on June 8, when it warned it was running out of
cash, disclosed in a regulatory filing it had no binding orders
or commitments from customers. 
    Last Monday, just days after Lordstown said it may not have
enough money to stay in business over the next year, CEO Burns -
who was also the company's founder and largest shareholder -
resigned, as did the chief financial officer. Lordstown also
acknowledged it had overstated the quality of preorders.
 urn:newsml:reuters.com:*:nL3N2NW1EY
    The following day, Lordstown President Rich Schmidt said the
automaker had binding orders, but the company subsequently
backtracked from that comment.  urn:newsml:reuters.com:*:nL2N2NX1ZF  urn:newsml:reuters.com:*:nL3N2NZ3CG  
    The U.S. Securities and Exchange Commission has asked the
company for information related to the truck preorders.
 urn:newsml:reuters.com:*:nL1N2LN247  urn:newsml:reuters.com:*:nL1N2LF3H1   

 (Reporting by Ben Klayman in Lordstown, Ohio, and Joe White in
Detroit
Editing by Jonathan Oatis and Matthew Lewis)
 ((Joe.White@thomsonreuters.com;))
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