RIDE - Lordstown Motors - Close Of Foxconn Transactions Helps Company To Avoid Bankruptcy - For Now
- Shares rally after an eleventh-hour deal with Foxconn limits near-term bankruptcy risk.
- Discussing details of the strategic partnership.
- Unfortunately, the Foxconn proceeds remain insufficient to fund the business for the remainder of 2022. According to management, the company will have to raise another $150 million this year.
- With the capital markets more or less closed to the company, it's difficult to envision Lordstown Motors securing $150 million in near-term funding.
- Investors should use any major relief rally to exit existing positions or even outright short the shares as bankruptcy remains the most likely outcome for the ailing company.
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Lordstown Motors - Close Of Foxconn Transactions Helps Company To Avoid Bankruptcy - For Now