Lordstown Motors (NASDAQ:RIDE) responded further to a letter it received from Foxconn (OTCPK:FXCOF) that claimed the electric vehicle maker was in breach of the terms of the investment deal.
Lordstown Motors’ (RIDE) statement: “Foxconn’s actions are completely unwarranted. Their course of conduct has resulted in material — and what is becoming irreparable — harm to the company. We intend to continue our efforts to minimize the damage and work with Foxconn to find an amicable path forward. However, in the absence of a timely resolution, we will take all actions necessary to protect our business interests and enforce all of our rights and remedies.”
Earlier in the day, Lordstown Motors (RIDE) issued a going concern warning.
Under the terms of the deal, Foxconn (OTCPK:FXCOF) is supposed to invest $47M within 10 days of regulatory approval by the Committee on Foreign Investment in the United States. Since the approval was secured on April 25, Lordstown (RIDE) has the position that Foxconn is due to make the investment by May 8. Foxconn has pointed to a Nasdaq listing deficiency notice as its rationale for not making the investment.
Shares of Lordstown Motors (RIDE) were down 29.87% to $0.37 at 11:30 a.m.
More on Lordstown Motors:
Lordstown Motors calls Foxconn’s investment pullout unwarranted
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