As of our most recent check, shares of Lordstown Motors Corp. (NASDAQ: RIDE) were up 16.76%, trading at $2.16, ahead of the release of the company’s quarterly earnings.
When will RIDE release its financial results?
Before the market opens today, Lordstown Motors (RIDE) will announce its financial results for the third quarter of 2022. At 8:30 a.m. Eastern Time, Lordstown Motors will also have a conference call. On the Events area of RIDE’s website, there is a live webcast of the call that may be accessed. Soon after the call, a webcast archive will be made accessible.
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RIDE struct an equity deal:
Yesterday, Lordstown Motors announced a partnership with Foxconn Ventures Pte. In accordance with the agreement, Foxconn agreed to make additional equity investments in RIDE totaling up to $100 million in newly created Series A Convertible Preferred Stock and up to $70 million in RIDE’s Class A Common Stock, both of which have a $0.0001 par value per share (collectively, the “Securities”). Foxconn will have the authority to choose two directors for Lordstown Motors’ Board of Directors and is anticipated to possess all of RIDE’s outstanding Preferred Stock and 18.3% of its Common Stock when the Investment Transactions are finalized.
RIDE will utilize the proceeds from the sale of the preferred stock to finance the research and design of a new electric vehicle program (the “EV Program”) in partnership with Foxconn, while the profits from the sale of the common stock will be used for general company purposes. The joint venture capital that Foxconn and RIDE had previously disclosed has been replaced by the $100 million direct Preferred Stock investment.
In accordance with the agreements governing the investment transactions, Foxconn will purchase a total of approximately 12.9 million shares of common stock at a price of $1.76 per share and 300,000 shares of preferred stock at a price of $100 per share at the initial closing anticipated to take place on or about November 22, 2022 (the “Initial Closing”), subject to customary conditions.
How will RIDE continue with it?
Foxconn will buy the remaining Lordstown Motors (RIDE) Preferred Stock shares if specific financial milestones for the EV Program are met, as agreed upon by the parties. Foxconn will buy an additional 26.9 million shares of RIDE common stock at a price of $1.76 per share, for a total of about $47.3 million (the “Subsequent Common Closing”), following receipt of all necessary regulatory approvals, including a review by the Committee on Foreign Investment in the United States (“CFIUS”), and subject to other customary conditions. To avoid diluting its ownership stake, Foxconn has also been given the ability to take part in future equity offers by Lordstown Motors under the terms of the acquisition agreements.
