Lordstown Motors Dodges Potential Nasdaq Delisting With Reverse Stock Split
Portfolio Pulse from AJ Fabino
Lordstown Motors Corp (NASDAQ:RIDE) announced a 1:15 reverse stock split on May 24 to avoid potential Nasdaq delisting and secure a $170-million funding lifeline from Foxconn Technology Co Ltd (OTC:FXCOF). The company has manufactured 56 units of its EV model, the Endurance, and delivered 18 to customers.
May 23, 2023 | 3:30 pm
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NEUTRAL IMPACT
Foxconn's potential $170-million investment in Lordstown Motors may be secured following the announcement of a 1:15 reverse stock split by the EV manufacturer.
The reverse stock split announcement by Lordstown Motors may help secure Foxconn's investment, but the long-term impact on Foxconn's stock price will depend on the success of the partnership and Lordstown's ability to ramp up production and sales of its EV model, the Endurance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Lordstown Motors announced a 1:15 reverse stock split to avoid Nasdaq delisting and secure funding from Foxconn, potentially stabilizing its financial situation.
The reverse stock split may help Lordstown Motors avoid delisting and secure funding from Foxconn, which could stabilize its financial situation. However, the company's long-term success will depend on its ability to ramp up production and sales of its EV model, the Endurance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100