- Lordstown Motors Corp’s stock (NASDAQ:RIDE) plummeted on Tuesday after the announcement of a reverse stock split.
- The electric vehicle’s original equipment manufacturer will undertake a 1:15 reverse split of its Class A common stock, effective May 24, 2023.
- When the market opens on May 24, Lordstown Motors’ Class A common stock will begin trading based on the stock split, under its current symbol, “RIDE”, on the Nasdaq.
- By improving the marketability and liquidity of the Class A common stock, the reverse stock split can make it more attractive to a range of investors, both institutional and professional.
- Furthermore, the reverse stock split raises the per-share market price of the Class A common stock to meet the Nasdaq’s minimum bid price requirement of $1.00.
- The stock has decreased 73.5% year-to-date and 13% over the last week.
- In May, Lordstown Motors announced it would cancel its Endurance electric truck production, citing an absence of investment and production delays.
- Lordstown Motors further warned of a possible bankruptcy after Hon Hai Precision Industry Co Ltd’s (OTC: HNHPF) affiliate, Foxconn Ventures Pte Ltd, expressed its intention to forego a $170 million investment.
- Currently, premarket RIDE shares are trading at $0.27, a decline of 10.6%, on the last check on Tuesday.
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