RIDE - Lordstown Motors calls Foxconn's investment pullout unwarranted

2023-05-01 11:31:44 ET

Lordstown Motors ( NASDAQ: RIDE ) responded further to a letter it received from Foxconn ( OTCPK:FXCOF ) that claimed the electric vehicle maker was in breach of the terms of the investment deal.

Lordstown Motors' ( RIDE ) statement: "Foxconn’s actions are completely unwarranted. Their course of conduct has resulted in material — and what is becoming irreparable — harm to the company. We intend to continue our efforts to minimize the damage and work with Foxconn to find an amicable path forward. However, in the absence of a timely resolution, we will take all actions necessary to protect our business interests and enforce all of our rights and remedies."

Earlier in the day, Lordstown Motors ( RIDE ) issued a going concern warning .

Under the terms of the deal, Foxconn ( OTCPK:FXCOF ) is supposed to invest $47M within 10 days of regulatory approval by the Committee on Foreign Investment in the United States. Since the approval was secured on April 25, Lordstown ( RIDE ) has the position that Foxconn is due to make the investment by May 8. Foxconn has pointed to a Nasdaq listing deficiency notice as its rationale for not making the investment.

Shares of Lordstown Motors ( RIDE ) were down 29.87% to $0.37 at 11:30 a.m.

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