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Lordstown Motors receives $400 million investment from hedge fund

Published 07/26/2021, 09:59 AM
Updated 07/26/2021, 10:01 AM
© Reuters. FILE PHOTO: A Lordstown Motors pre-production all electric pickup truck, the Endurance, is seen after being merged with a chassis at the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook

(Reuters) - Lordstown Motors Corp said on Monday it received a $400 million equity investment from hedge fund YA II PN Ltd, at a time when the electric-truck maker is under regulatory scrutiny related to its SPAC merger and vehicle pre-orders.

According to a regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/0001759546/000155837021009220/ride-20210723x8k.htm, Mountainside, New Jersey-based fund YA, managed by investment management services provider Yorkville Advisors Global LP, has agreed not to engage in any short sales or hedging transactions on Lordstown stock.

Yorkville Advisors Global did not immediately respond to a Reuters' request for comment.

© Reuters. FILE PHOTO: A Lordstown Motors pre-production all electric pickup truck, the Endurance, is seen after being merged with a chassis at the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook

The company's shares were up 4.3% at $7.8, and are on track to snap a three-day streak of losses.

Lordstown said last week federal prosecutors in Manhattan were investigating its vehicle pre-orders and its merger with blank-check company DiamondPeak Holdings.

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