Brief: Lordstown Motors Corp Says On April 21, 2023, Co Received Letter From Foxconn Asserting That Co Was In Breach Of Investment Agreement

Nu Ride

01/05/2023 14:45

May 1 (Reuters) - Lordstown Motors Corp  RIDE.O :
    * LORDSTOWN MOTORS CORP - ON APRIL 21, 2023, COMPANY
RECEIVED A
LETTER FROM FOXCONN ASSERTING THAT COMPANY WAS IN BREACH OF
INVESTMENT AGREEMENT
    * LORDSTOWN MOTORS CORP - COMPANY HAS NOTIFIED FOXCONN THAT
IT
BELIEVES THE "BREACH ALLEGATIONS IN THE FOXCONN NOTICE ARE
WITHOUT MERIT"
    * LORDSTOWN MOTORS CORP - FOXCONN HAS DECLINED TO REVOKE
TERMINATION NOTICE
    * LORDSTOWN MOTORS CORP - FOXCONN FAILED TO CONFIRM THAT IT
WILL
PROCEED WITH SUBSEQUENT COMMON CLOSING OR ANY PREFERRED STOCK
CLOSING
    * LORDSTOWN - ON APRIL 21,,  RECEIVED A LETTER FROM FOXCONN
PURPORTING TO TERMINATE INVESTMENT AGREEMENT IF BREACH IS NOT
CURED WITHIN 30 DAYS
    * LORDSTOWN MOTORS CORP - BELIEVES THAT THE INVESTMENT
AGREEMENT
REMAINS IN EFFECT
    * LORDSTOWN - IN DISCUSSIONS WITH FOXCONN TO SEEK A
RESOLUTION
    * LORDSTOWN MOTORS CORP - BREACH DUE TO NOTICE THAT CO NOT
IN
COMPLIANCE WITH MINIMUM BID PRICE REQUIREMENT FOR LISTING ON
NASDAQ GLOBAL SELECT MARKET
    * LORDSTOWN - COMPANY IS EVALUATING ITS LEGAL AND FINANCIAL
ALTERNATIVES IN THE EVENT A RESOLUTION IS NOT REACHED.
    * LORDSTOWN - AS A RESULT OF UNCERTAINTIES, THERE IS
SUBSTANTIAL
DOUBT REGARDING OUR ABILITY TO CONTINUE AS A GOING CONCERN
    * LORDSTOWN MOTORS CORP - ABILITY TO OBTAIN ADDITIONAL
FINANCING
IS EXTREMELY LIMITED UNDER CURRENT MARKET CONDITIONS
    * LORDSTOWN - IF UNABLE TO RESOLVE DISPUTE WITH FOXCONN ,
MAY NEED
TO SEEK PROTECTION BY FILING A VOLUNTARY PETITION FOR RELIEF
UNDER BANKRUPTCY CODE
    * LORDSTOWN - IF UNABLE TO RESOLVE DISPUTE WITH FOXCONN WE
MAY
NEED TO CURTAIL OR CEASE OPERATIONS

Source: [ID: https://bit.ly/40T6KSH]
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