Lordstown's funding in crisis as investor Foxconn alleges agreement breach (updated)

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01/05/2023 14:53

(Add details, background)
       May 1 (Reuters) - Major shareholder Foxconn is alleging
that Lordstown Motors  RIDE.O  had breached their $170 million
investment deal, the EV maker said on Monday, while warning that
it might not have enough cash to fund its operations if the
agreement falls through.
    Lordstown, whose shares tumbled 15% in early trading, said
Foxconn pointed to the delisting notice that the company
received from the Nasdaq in a letter alleging the breach.
    The U.S. company rejected the allegation and said it was in
talks with the Taiwanese contract manufacturer to seek a
resolution.  
    Foxconn did not immediately respond to a request for
comment.     
    Foxconn had in November struck a deal to take a near-20%
stake in loss-making U.S. electric truck maker Lordstown Motors
for up to $170 million.
    

 (Reporting by Tiyashi Datta in Bengaluru; Editing by Anil
D'Silva)
 ((tiyashi.datta@thomsonreuters.com;))