Lightning eMotors To Sell Substantially All Assets For $12.6M
Portfolio Pulse from Benzinga Newsdesk
Lightning eMotors, Inc. (OTC:ZEVY) is selling substantially all of its assets for $12.6 million in cash to an undisclosed buyer, as part of a receivership transaction. The sale is subject to court approval and the proceeds will be used to pay the company's creditors. Shareholders will not receive any distributions from the sale, and the buyer does not plan to continue the company's business.
January 25, 2024 | 9:24 pm
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Lightning eMotors, Inc. is selling its assets for $12.6 million, with proceeds going to creditors. Shareholders will not benefit from the sale, and the company's business will not be continued by the buyer.
The sale of Lightning eMotors' assets is a clear indication of financial distress, likely leading to a negative perception among investors. The fact that shareholders will not receive any distributions and the buyer is not continuing the business suggests a bleak outlook for the company, which is expected to negatively impact the stock price in the short term.
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