Lordstown Motors Corporation and Foxconn Ventures have announced a new deal. In exchange for equity, Foxconn will spend up to $170 million on Lordstown Motors.
The two firms will collaborate on the creation and design of a new electric car program, according to a news release.
Foxconn is expected to hold all of Lordstown Motors‘ outstanding preferred stock and 18.3% of its common stock upon the completion of the investment transactions. It will be permitted to appoint two members to the LMC Board of Directors.
Lordstown Motors will use the transaction revenues for general business reasons. With the money from the sale of preferred stock, the EV Program, a new electric vehicle program made in partnership with Foxconn, will be planned and built.
“Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies. Foxconn’s latest investment is another step in that direction,” said Daniel Ninivaggi, executive chairman of Lordstown Motors Corporation, via press release. “Our board of directors and management team strongly believe that deep collaboration with the Foxconn EV ecosystem … offers tremendous opportunities to meet our mutual ambition to accelerate EV adoption globally.”
“Over the last year, the LMC and Foxconn teams have worked collaboratively to bring the Endurance into commercial production, despite numerous external challenges. We acknowledge and appreciate the confidence in our team that is shown by this investment,” said Edward Hightower, CEO, and president of Lordstown Motors Corporation, in a press release.
