Entrepreneurship

Lordstown Motors lands $400 million investment, startup says

Read more at www.cnet.com

Lordstown wants to start production in under two months.


Sean Szymkowski/Roadshow

Lordstown Motors, the Ohio-based startup aiming to produce its Endurance electric pickup trucks for commercial fleets, said on Monday hedge fund YA II PN Ltd. committed $400 million, should the firm need it. Reuters first reported the news Monday. The investment comes by way of stock purchases, if Lordstown shareholders approve the action, and follows a spate of dark financial news for the startup.

If approved and Lordstown chooses to trigger the option, the hedge fund will receive 35 million shares of Lordstown stock at a discount as part of the commitment. It certainly seems like the startup will need it. In its most recent financial report, when it confirmed it has no binding orders for its truck, the company said lack of capital to even start scale production remained a “going concern.” During a media event in June, Lordstown executives said it was searching for additional investment.

The company maintained it would begin production of the first trucks this September, despite turbulent times that included the company’s founder and CEO and its CFO both resigning. Federal prosecutors are also investigating the company over its past preorder statements and its merger with a blank-check company.

Lordstown did not immediately return a request for comment on the news, but the firm last said it’s continuing to work on preproduction setup and preparing for in-wheel hub motor production ahead of the Endurance’s full production start.

Read more at www.cnet.com

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