RIDE - Lordstown and Foxconn broaden partnership with new investment board deal

Lordstown Motors ( NASDAQ: RIDE ) disclosed that Foxconn invested $170M in the electric vehicle maker and will have board representation with two designees.

Lordstown Motors ( RIDE ) plans to use the proceeds from the sale of common stock to Foxconn ( OTCPK:FXCOF ) for general corporate purposes and the proceeds from the sale of preferred stock to fund development and design activities for a new electric vehicle program in collaboration with Foxconn. A $100M direct preferred stock investment replaces the joint venture funding previously announced.

Upon certain terms and conditions, Foxconn can convert the preferred Stock into shares of common stock at a conversion price of $1.936, subject to customary adjustments. Lordstown Motors ( RIDE ) can also force a conversion of the preferred shares at the same price.

A standstill agreement between Foxconn and RIDE is in place until December 31, 2024.

"Our Board of Directors and management team strongly believe that deep collaboration with the Foxconn EV ecosystem, including the Mobility-in-Harmony open-source platform, offers tremendous opportunities to meet our mutual ambition to accelerate EV adoption globally," noted Lordstown Executive Chairman Daniel Nionivaggi.

Shares of RIDE moved up 4.32% in after-hours trading to $1.93.

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