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Foxconn finalizes $50 million stock deal with Lordstown Motors

Published 11/10/2021, 06:04 PM
Updated 11/10/2021, 07:36 PM
© Reuters. FILE PHOTO: People wear masks to protect themselves from the coronavirus disease (COVID-19) while listening to the annual general meeting at the lobby of Foxconn's office in Taipei, Taiwan, June 23, 2020. REUTERS/Ann Wang/File Photo  GLOBAL BUSINESS WEEK
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(Reuters) - Lordstown Motors Corp said on Wednesday that Taiwan's Foxconn has bought stock worth $50 million from the U.S. electric vehicle maker, finalizing an equity investment announced in September.

Foxconn acquired the shares at $6.8983 apiece, Lordstown said. The stock, which had closed at $5.56 in regular trading, rose about 10% to $6.11 after the bell.

In September, Foxconn said it would buy an Ohio plant assembly plant owned by Lordstown for $230 million and take over production of the U.S. company's Endurance full-size pickup truck.

Foxconn - the world's largest contract electronics maker best known for assembling Apple (NASDAQ:AAPL)'s iPhone - agreed to make a down payment of $100 million by Nov. 18.

"The partnership with Foxconn should enable Lordstown Motors to significantly reduce its raw material, component and other input costs," the company said.

The deal is expected to close by April 30, Lordstown said.

© Reuters. FILE PHOTO: People wear masks to protect themselves from the coronavirus disease (COVID-19) while listening to the annual general meeting at the lobby of Foxconn's office in Taipei, Taiwan, June 23, 2020. REUTERS/Ann Wang/File Photo  GLOBAL BUSINESS WEEK AHEAD

Earlier in the day, Lordstown said long-time automotive industry executive Edward Hightower would take over as president.

Lordstown's shares have lost more than 70% of their value this year. The company is scheduled to report third-quarter results on Thursday.

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