RIDE - Lordstown updates Foxconn dispute Nasdaq listing issue
2023-06-09 07:01:13 ET
Lordstown Motors ( NASDAQ: RIDE ) indicated it will seek legal remedies to enforce Foxconn’s planned purchase of approximately 10% of the Company’s Class A common stock for $47.3M in an SEC filing on Friday.
The company explained that Foxconn “did not acknowledge its obligation to complete the Subsequent Common Closing and instead asserted that Foxconn’s reading of the Investment Agreement would not allow for the adjustment of the number of shares to be purchased on account of the Company’s recent reverse stock split.” As such, the company has officially informed Foxconn of its intent to pursue legal action.
“In light of Foxconn’s conduct, the Company believes that it is unlikely that Foxconn will complete the Subsequent Common Closing,” the filing stated. “The Company believes that Foxconn’s various breaches of the Investment Agreement and pattern of bad faith have caused material and irreparable harm to the Company. Absent a prompt resolution, the Company intends to enforce its rights through litigation.”
Elsewhere, the company noted that its reverse split has satisfied listing requirements with the Nasdaq. The company was informed that it is in good standing in written correspondence with the exchange earlier in the week.
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Lordstown updates Foxconn dispute, Nasdaq listing issue