Lordstown opts for reverse stock split to meet Nasdaq rules, appease Foxconn (updated)

Nu Ride

23/05/2023 12:51

(Adds details on stock split in paragraph 2, shares in
paragraph 3 )
       May 23 (Reuters) - Lordstown Motors Corp  RIDE.O  said
on Tuesday it will carry out a reverse stock split to meet the
Nasdaq listing norms and to appease investor Foxconn  2317.TW ,
which had threatened to scrap a crucial $170 million funding.  
    The 1:15 split will happen on May 24, the electric vehicle
startup said, but added there was no assurance that the Foxconn
deal will close. 
    Lordstown Motors shares fell 10% in premarket trading to
$0.26, slipping further below the $1 minimum requirement of the
Nasdaq.   
    The company had earlier this month warned it might be forced
to file for bankruptcy due to uncertainty over the investment
from Foxconn.
      

 (Reporting by Akash Sriram in Bengaluru; Editing by Arun
Koyyur)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter;
+91-74116-87774;))