Lordstown Motors has had a tough couple of years.
The Ohio-based automaker is now anticipating manufacturing of its introductory pickup truck, the Endurance, to finish “within the close to future” as it’s in search of further capital from future buyers and companions.
Simply days in the past, it introduced that its partnership with Foxconn may fall by way of after the corporate despatched a letter to Lordstown stating that it was accusing the automaker of breaching its Funding Settlement “as a consequence of its beforehand disclosed receipt of a discover from the Nasdaq Inventory Market LLC indicating that the Firm was now not in compliance with the $1.00 minimal bid worth requirement for continued itemizing on The Nasdaq International Choose Market.”
Foxconn shares are buying and selling at $0.36, down over 22 % this week alone. Over the previous yr, shares have sunk $1.72, over 82 %.
Whereas Lordstown believes Foxconn’s allegations are “with out benefit,” it doesn’t sound prefer it expects the deal to proceed.
“So far, we have now not recognized a strategic accomplice for the Endurance. To the extent we don’t establish such a accomplice, we anticipate that manufacturing of the Endurance will stop within the close to future,” it stated in a 10-Q submitting.
Lordstown is continuous to aim to resolve its relationship with Foxconn, and that would embody a revised checklist of phrases. Nonetheless, it’s making an attempt to spherical up capital at a particularly troublesome monetary time and stated that it’s having an “extraordinarily restricted potential” to boost cash within the present market.
Lordstown has solely $108.1 million in money available as of the top of Q1. On the finish of final yr, it reported that it had $221.7 million in money and short-term investments, a roughly $18 million improve from what it had on the finish of Q3.
It ended 2022 with solely three deliveries of the Endurance pickup.
Disclosure: Joey Klender isn’t a Lordstown or Foxconn investor.