- New management warns of significantly higher spending requirements and hints to a change in business strategy.
- Outsized cash usage will require the company to utilize the recent $400 million share purchase agreement with hedge fund YA II, a division of Yorkville Advisors rather sooner than later.
- Discussing the toxic character of the YA II financing agreement.
- Following the Q2 report and subsequent conference call, analysts reduced price targets across the board on expectations for massive dilution.
- At this point, it's difficult to envision a happy end for the embattled company as Lordstown Motors is lacking both a valid business model and the capital to develop and implement one. Investors should consider selling existing positions or even outright short the shares.
For further details see:
Lordstown Motors - Lacking Both Capital And A Valid Business Model - Sell