Lordstown Motors warned that it is in danger of failing as the electronics company Foxconn wavers on a $170 million investment in the commercial electric vehicle startup.
The Ohio company said in a regulatory filing on Monday that it had received notice from Foxconn on April 21 that it was in breach of their investment agreement because it had gotten a delisting warning from Nasdaq two days earlier.
"As a result of these uncertainties, there is substantial doubt regarding our ability to continue as a going concern," the company wrote.
Lordstown is in danger of being delisted from the Nasdaq because its share price closed below $1 on March 7 and it has not recovered since.
Read more: https://www.wkyc.com/article/money/business/lordstown-motors-may-fail-foxconn/95-b197870b-87d4-4466-8f3f-76a87d9dd079
The Ohio company said in a regulatory filing on Monday that it had received notice from Foxconn on April 21 that it was in breach of their investment agreement because it had gotten a delisting warning from Nasdaq two days earlier.
"As a result of these uncertainties, there is substantial doubt regarding our ability to continue as a going concern," the company wrote.
Lordstown is in danger of being delisted from the Nasdaq because its share price closed below $1 on March 7 and it has not recovered since.
Read more: https://www.wkyc.com/article/money/business/lordstown-motors-may-fail-foxconn/95-b197870b-87d4-4466-8f3f-76a87d9dd079