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Lordstown Motors, an electric vehicle (EV) manufacturer, has announced that it will execute a 1:15 reverse stock split on May 24 to avoid a potential delisting from the Nasdaq. According to reports, this decision was taken to comply with Nasdaq listing standards while also seeking approval from Foxconn Technology, a crucial investor that hinted at the possibility of withdrawing its $170-million funding lifeline to the struggling EV manufacturer. Lordstown has committed to closing the Foxconn deal and manufacturing 56 units of its EV model Endurance, delivering 18 of them to customers, including 12 since late April. However, there is no assurance that the deal will be closed. As of April 30, Lordstown had approximately $165 million in cash, cash equivalents, and short-term investments. If enacted, with shares trading at 29 cents, one share would be worth $4.35. Shares of Lordstown Motors are trading 4.3% lower to 29 cents, according to data from Benzinga Pro.
By JamesUpdated:No Comments1 Min Read