Lordstown Motors Corp., a developer of electric light-duty trucks focused on the commercial fleet market, announced that it will release its first quarter financial results before market open on May 9, 2022. The company will then host a conference call at 8:30 a.m. Eastern Time.
The call can be accessed via a live webcast accessible on the Events page of Lordstown Motors’ Investor Relations website at https://investor.lordstownmotors.com/. An archive of the webcast will be available shortly after the call.
Lordstown Motors is also providing an update with respect to the pending transactions under the asset purchase agreement entered into with Foxconn EV Technology, Inc. (“Foxconn Ohio”), an affiliate of Hon Hai Technology Group (“Foxconn”), on November 10, 2021 (the “APA”). The APA provides, among other things, that Foxconn Ohio will purchase the Lordstown facility for $230 million and reimburse certain operating and expansion costs incurred by Lordstown Motors from September 1, 2021, through the closing. To date, Foxconn Ohio has made down payments of $100 million on November 18, 2021, $50 million on January 28, 2022, and $50 million on April 15, 2022. On April 9, 2022, the parties received clearance of the transactions from the Committee on Foreign Investment in the United States (CFIUS).
The closing remains subject to additional closing conditions, including further negotiation and execution of a contract manufacturing agreement.
Under the APA, the parties also agreed to use commercially reasonable efforts to enter into a joint venture agreement for the purpose of jointly designing, engineering, developing, validating, and launching vehicle programs for the commercial vehicle market in North America and internationally using Foxconn’s Mobility-in-Harmony platfo
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No assurance can be made that the APA will ultimately be consummated on the terms contemplated, or at all, or that any joint venture or related funding structure (the “Joint Venture Agreement”) will be reached or as to the terms of the Joint Venture Agreement. Pursuant to the APA, if the contemplated transactions are not consummated by May 14, 2022, then, subject to any defenses and/or other claims it may have, Lordstown Motors would be obligated to repay the down payments to Foxconn by such date, unless the parties have agreed to an extension of the repayment deadline. Lordstown Motors has granted Foxconn a first priority security interest in substantially all of its assets to secure the repayment obligation and does not currently have sufficient available cash to repay the down payments by the repayment deadline. See “Forward-Looking Statements” below for additional information regarding risks and uncertainties relating to the potential Foxconn transactions and otherwise that may affect Lordstown Motors’ prospects, future results and ability to continue as a going concern.
Lordstown Motors expects to provide further updates regarding the status of the APA and related transactions as part of its earnings announcement and conference call on May 9, 2022.