Lordstown Motors Insider Trading Scandal.
Members of the leadership team at Lordstown Motors appear to have sold large amounts of company stock just before reports of various troubles at the company became public. Five top Lordstown executives—including president Rich Schmidt, now former chief financial officer Julio Rodriguez, and propulsion head Chuan "John" Vo—sold some of their shares worth a total of more than $8 million in early February when the stock was worth around $24 a share. Today, it's worth around $10.
Lordstown disclosed in their most recent regulatory filing that they may not have the cash to get their debut pickup truck to market -- and might not last as a company over the next 12 months if they can’t raise more more capital. Lordstowns CEO Steve Burns announced during the company’s first-quarter earnings call last month that the endurance which is still undergoing development would not be completed if the company did not raise more money.
“The company’s ability to continue as a going concern is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles,” the filing said. “The company believes that its current level of cash and cash equivalents are not sufficient to fund commercial scale production and the launch of sale of such vehicles.”
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Members of the leadership team at Lordstown Motors appear to have sold large amounts of company stock just before reports of various troubles at the company became public. Five top Lordstown executives—including president Rich Schmidt, now former chief financial officer Julio Rodriguez, and propulsion head Chuan "John" Vo—sold some of their shares worth a total of more than $8 million in early February when the stock was worth around $24 a share. Today, it's worth around $10.
Lordstown disclosed in their most recent regulatory filing that they may not have the cash to get their debut pickup truck to market -- and might not last as a company over the next 12 months if they can’t raise more more capital. Lordstowns CEO Steve Burns announced during the company’s first-quarter earnings call last month that the endurance which is still undergoing development would not be completed if the company did not raise more money.
“The company’s ability to continue as a going concern is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles,” the filing said. “The company believes that its current level of cash and cash equivalents are not sufficient to fund commercial scale production and the launch of sale of such vehicles.”
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve
Join this channel to support making this content:
https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join
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