By Sam Boughedda
Investing.com — Lordstown Motors Corp (NASDAQ: RIDE ) said late Wednesday that Taiwan-based electronics company Foxconn is going ahead with plans to acquire its vehicle manufacturing facility in Lordstown, Ohio.
The companies will go ahead with the previously announced deal that will see Foxconn pay $230 million for the facility — providing a much-needed boost for the cash-strapped electric vehicle company.
Foxconn has agreed to make a down payment of $100 million by November 18, subsequent payments of $50 million on February 1, and no later than April 15. The balance of the purchase price will be paid at closing. Once the transaction is closed, Foxconn will receive 1.7 million warrants to acquire Lordstown common stock, exercisable for three years, at $10.50 per share.
Lordstown shares have rallied over 15%, to $6.43 so far Thursday.
After signing the agreement in September, they told investors that Foxconn purchased $50 million of common stock from Lordstown Motors at about $6.89 per share.
The companies will work on Lordstown's electric vehicle programs in the Ohio production and assembly plant.
They have also agreed to continue a manufacturing agreement for the Endurance pickup truck, while they will pursue a joint venture to co-design and develop vehicle programs for the global commercial fleet market.
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