EV maker Lordstown plans to sue Foxconn over stake dispute (updated)

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09/06/2023 11:41

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       June 9 (Reuters) - Lordstown Motors  RIDE.O  said on
Friday it plans to take legal action against major investor
Foxconn  2317.TW  to ensure that the Taiwanese contract
manufacturer completes a planned purchase of nearly 10% of the
electric vehicle startup's shares.
    The company said in a filing it believes Foxconn was
unlikely to complete the promised purchase on the basis of a
letter the contract manufacturer sent Lordstown earlier this
month, in which the Taiwanese company said its reading of the
investment agreement "would not allow for the adjustment of the
number of shares to be purchased on account of the company's
recent reverse stock split."
    Lordstown in May announced a reverse stock split to meet
Nasdaq listing norms and appease Foxconn, which has threatened
to scrap a crucial $170 million funding for the struggling
electric-vehicle maker. The 1:15 split was scheduled for May 24.
    Foxconn did not immediately respond to a Reuters request for
comment.
        
  




 (Reporting by Tiyashi Datta in Bengaluru; Editing by Savio
D'Souza and Nivedita Bhattacharjee)
 ((tiyashi.datta@thomsonreuters.com;))