EV Startup Lordstown Motors falls on reverse stock split

Nu Ride

23/05/2023 13:31

** Electric-vehicle startup Lordstown Motors Corp  RIDE.O 
down 14.67% at 25 cents in premarket trade 
    ** Announces 1:15 reverse stock split of its Class A common
stock, effective May 24, 2023 
    ** Stock split announced to meet Nasdaq listing norms and to
appease investor Foxconn, which had threatened to scrap crucial
$170 million funding
    ** Co says no assurance that the Foxconn deal will close 
    ** Says, it believes there was no failure of any closing
condition, and was ready, willing and able to close transaction
on May 8, as required under investment agreement
    ** RIDE said earlier this month Foxconn alleged in a letter
that Lordstown was in breach of their investment agreement
following a Nasdaq delisting notice  
    ** Says in light of Foxconn dispute, it is aggressively
reducing costs and maintaining liquidity 
    ** As of last close, stock was down 73.68% YTD 

 (Reporting By Akshita Toshniwal in Bengaluru)
 ((Akshita.Toshniwal@thomsonreuters.com))