Lordstown Motors Corp (NASDAQ: RIDE) is trading higher in Wednesday’s after-hours session after the company, and Foxconn, announced they have entered into a definitive Asset Purchase Agreement regarding Lordstown Motors’ facility in Lordstown, Ohio.
Lordstown Motors has agreed to sell to Foxconn the Lordstown facility, excluding certain assets such as the hub motor assembly line and battery module and pack lines, for $230 million.
The parties have agreed to pursue a contract manufacturing agreement for the Endurance pickup truck, which must be entered into before closing—currently targeted by April 30, 2022.
Lordstown Motors and Foxconn will pursue a joint venture agreement to co-design and develop vehicle programs for the global commercial fleet market.
Foxconn will receive 1.7 million warrants to acquire Lordstown Motors common stock, exercisable for three years, at a price of $10.50 per share.
Lordstown Motors is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers.
RIDE Price Action: Lordstown Motors has traded as high as $31.56 and as low as $4.64 over a 52-week period.
At time of publication, the stock was up 10.6% at $6.14 in Wednesday’s after-hours session.
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