Electrical supply truck maker
Workhorse Group Inc.
mentioned Monday it bought down a lot of its stake in
Lordstown Motor Corp.
this summer time, lowering its fairness place within the embattled Ohio-based startup.
Workhorse, in an organization submitting, mentioned it had bought 11.9 million shares in
since July 1, lowering its 9% stake by almost three-quarters. Workhorse, additionally based mostly in Ohio, was an early investor in Lordstown Motors, which was established in 2019 by Workhorse founder and former chief govt
an entrepreneur who had beforehand begun tech and advertising and marketing corporations.
The divestiture comes forward of Lordstown Motors’ deliberate electric-truck launch in September. The startup is cash-strapped and making an attempt to lift extra capital to make sure its survival.
Beginning manufacturing of Lordstrown Motors’ debut pickup truck, the Endurance, is a vital goal for the startup, which went public final fall via a reverse merger with a special-purpose acquisition firm, or SPAC.
In current months, the corporate has been rocked by quite a few challenges, together with federal investigations into its enterprise practices, and the exit of Mr. Burns.
Workhorse mentioned it netted $79 million from promoting down its Lordstown Motors shares. Lordstown Motors inventory was buying and selling at $5.77 a share Monday morning, down 2.7% after Workhorse reported it decreased its stake.
Lordstown Motors didn’t instantly reply to a request for remark.
Workhorse, established in 2007, develops and sells electric-powered supply vehicles and vans for package-delivery corporations and utilities. It went public in 2010 via an providing on the over-the-counter market.
Workhorse’s ties to Lordstown Motors transcend it holding an fairness stake; a number of former Workhorse executives had adopted Mr. Burns to Lordstown Motors after he began the electric-truck agency.
Lordstown Motors Govt Chairwoman
who’s overseeing the corporate following Mr. Burns’s departure in June, had served as a vice chairman at Workhorse till 2018. Others who joined Mr. Burns from Workhorse have since left, together with Lordstown Motors’ former chief monetary officer and chief working officer, and his daughter,
who had been the corporate’s advertising and marketing director.
Write to Ben Foldy at [email protected]
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