RIDE - Foxconn to invest up to $170M in Lordstown Motors
- Taiwanese electronics manufacturing giant Foxconn ( OTCPK:HNHAF ) ( OTCPK:HNHPF ) will invest up to $170M in U.S. electric vehicle maker Lordstown Motors ( NASDAQ: RIDE ), the two firms said on Monday.
- Lordstown Motors ( RIDE ) stock had gained 5.4% to $1.95 after hours.
- Post completion of the deal, Foxconn is expected to have an 18.3% stake in RIDE.
- Foxconn will also have the right to designate two members of RIDE's board.
- As per the deal, Foxconn and RIDE will end their existing electric vehicle (EV) joint venture agreement for a new EV collaboration program.
- The $170M investment will comprise of $70M in RIDE's class A shares and up to $100M of a newly created convertible preferred stock, the companies said.
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Foxconn to invest up to $170M in Lordstown Motors