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Monarch Tractor completes first units of production edition
On December 1, 2022, the first production units of the Monarch Tractor MK-V rolled off the assembly line, marking a milestone in the growth of the company.
When it first launched publicly in 2020, the Monarch Tractor MK-V changed the agriculture industry with next-generation electric vehicle technology and the promise of a fully autonomous compact tractor form factor that was unique to the industry. The company deployed the first prototype tractors locally at Wente Vineyards in Livermore California. The Livermore region in California is home to a number of grape growers and wine producers, and this is where the company decided to set up its corporate headquarters.
“This is a momentous day for Monarch Tractor that has been years in the making,” said Praveen Penmetsa, co-founder & CEO, of Monarch Tractor. “Our team has worked tirelessly and relentlessly with a mission to make farming more profitable and sustainable. We’re proud to see our commitment to technological innovation and sustainable solutions culminate in celebrating our first tractor off the production line, which, I might add, is powered by renewable energy.”
Monarch Tractor has secured several strategic partnerships globally including CNH Industrial and V.S.T. Tillers Tractors, and recently signed a contract manufacturing agreement with Hon Hai Technology Group (“Foxconn”,) the world’s largest electronic manufacturer, to build the MK-V and its battery packs at the Foxconn Ohio facility. The first production units for the Constellation Brands contract, however, are coming off the Founder Series production line at its headquarters and manufacturing facility in Livermore, California.
The tractor platform immediately turned a lot of heads when it was launched in 2020. While larger form factor tractors by John Deere and others have had ADAS and driver support features for more than a decade, the Monarch Tractor MK-V was the first compact tractor to come to market with an all-electric drive train.
The company decided to go after the compact tractor form factor as this market is one of the largest market segments around the world, serving small to medium size operations in every growing region and crop opportunity.
On top of the all-electric drive train, the MK-V also offers full autonomy with a complete suite of vision cameras and other sensors that enable the tractor to navigate and avoid obstacles during operation. The company continues to upgrade and roll out new software features that enhance the capabilities for self-driving, perception and autonomy.
The tractors use six NVIDIA Jetson Xavier NX SOMs (system on modules) that help them safely navigate fields using only cameras. “This is important in agriculture environments because there may be no GPS signal,” said Penmetsa. “It’s also crucial for safety as the Monarch is intended for totally driverless operation.”
The Founder Series MK-V runs two 3D cameras and six standard cameras. With the six Jetson edge AI modules on board, it can run models for multiple farming tasks when paired with different implements. “The NVIDIA Jetson enables the MK-V to run low-latency, real-time AI applications while at the same time conserving energy for longer battery life and extended run time,” said Penmetsa.
Key features of the MK-V include:
Renewable Technology: The MK-V is electric and emits no pollution. It serves as a tractor, utility vehicle, and powerful electric generator in the field.
Driver Optional: Monarch combines driver-assist and driver-optional hardware and software. The Monarch MK-V can execute pre-programmed operations without a driver, or an operator can leverage interactive automation features like Shadow mode to follow a worker.
Unprecedented Safety: The MK-V is full of safety features like rollover and collision prevention, vision-based Power Take Off (PTO) safety, and 360° cameras to keep operations running smoothly and employees safe, day or night.
Deep Learning & Sensing Suite: The MK-V collects and analyzes crop data every day. It can also process data from current and next-generation implements with sensors and imaging. This information can be used to make changes to the hardware in real-time, estimate long-term yields, figure out where the plant or crop is in its growth cycle, and get other information about its health.
Smart Device Operation: MK-V users get alerts about the status of their tractors, detailed reports about their operations, and data collection, analysis, and storage for better farm planning.
Powerful: The Monarch electric drivetrain is capable of providing 40HP (30KW) of continuous power and short-duration peak power up to 75HP (55KW) in a small footprint for multi-purpose usage.
“We are pleased to partner with Monarch Tractor as its first customer, accelerating our deep commitment to sustainability while supporting a business driving future-forward innovation in agriculture technology,” said Robert Hanson, president of Constellation Brands’ Wine & Spirits division. “As we build a leading global premium, fine wine and craft spirits portfolio, comprised of some of the world’s top vineyards including To Kalon (whose organic certification is expected in early 2023), we are focused on protecting and amplifying our resources while producing the highest quality wines and spirits in the world. Being the first to leverage the Founder Series MKV affords us an industry-first opportunity to do so, and we congratulate Monarch on this exciting Launch.”
Monarch Tractor was a 2021 RBR50 honoree for the innovation of an all-electric, autonomous, compact-format tractor. CEO Praveen Penmetsa was a guest on The Mobile Robot Guide Podcast in episode 6.
In California, Monarch Tractor is championing the acceptance of fully autonomous tractors as an automation solution for California farmers, in light of the ban on autonomous tractors by CAL OSHA. The California agriculture market is one of the largest markets for specialty crops in the world, and is important to the success of the MK-V. Labor availability is one of the key market drivers for specialty crops as it requires a lot of manual labor for cultivation and harvesting.
RIDE has NO VEHICLES to sell. End of story.
RIDE 45% MIH EV partnership. Foxconn 55% It's in the filing.
Huge! Equates to the reason for the Foxconn 170 million investment
for 100% RIDE preferred shares and 18% of the common.
It's in the filings and explains the massive $170 million investment and
the partnership.
They filed the top notch partnership with the SEC.
RESEARCH! will show the massive worldwide collaboration
Let me correct my post: RIDE has NO trucks to sell…and might not ever.
Is Amazon gonna start delivering packages via tractors? I doubt it.
Except RIDE has practically no trucks to sell. That doesn’t help Amazon one bit.
Agree KMC-1 - 1,000%
Hightower says the company would announce “in the coming weeks” when it would resume production of the Endurance.
Meanwhile, the CEO says a new vehicle is in the works with Foxconn, and he remains optimistic about the future of Lordstown Motors.
“The next platform and vehicle program are key to Lordstown Motors’ long-term business strategy and are becoming a greater portion of our company’s focus,” Lordstown Motors said.
Saturday, March 11, 2023 Dan O'Brien
Lordstown Motors Explains Brake Defect on Endurance
LORDSTOWN, Ohio – Lordstown Motors Corp. has filed documents with the National Highway Traffic Safety Administration providing more details about a braking defect that affects some models of its all-electric pickup, the Endurance.
“The electric park brake calipers may have been built with washers that had not been properly heat-treated by the supplier,” documents say. As such, the clamping force of the brakes may degrade over time and “could allow the vehicle to roll after being parked, especially on a high grade, which could increase the risk of a crash.”
Lordstown Motors has not received any reports of accidents or injuries related to this issue, the NHTSA filing states.
Still, the matter prompted Lordstown Motors to initiate its second voluntary recall of the Endurance within a two-week time frame.
Edward T. Hightower, Lordstown Motors president and CEO, disclosed the second recall during a conference call with investors March 6, noting that one of its suppliers alerted the company of the defect.
“They have since supplied us with corrective parts, and we have filed a voluntary recall to address this issue,” he said.
According to the NHTSA filing, the most recent recall affects five vehicles.
On Feb. 20, Akebono Brake Corp. of Farmington Hills, Mich., notified Lordstown Motors that certain rear electric park brake calipers delivered to the company between Nov. 4, 2022 and Feb. 8, 2023 were potentially equipped with faulty thrust washers that were provided to Akebono through a sub-supplier.
The sub-supplier contacted Akebono in early February about the possible problem and subsequently conducted an analysis that determined a “small percentage of washers” had not undergone proper heat treatment.
Once Lordstown Motors analyzed the data, it issued a recall on the Endurance March 1.
Akebono told Lordstown Motors that the rear brake systems are all marked and traceable. Akebono then provided the electric-vehicle manufacturer with shipment identifications of those parking brake systems with potentially defective washers.
Lordstown Motors said only electric park brakes with washers that have been properly heat-treated will be used in future production and all those vehicles in production will be retrofitted with the corrected part.
Lordstown Motors said it would replace those affected systems with new ones at no cost to the owner.
On Feb. 21, Lordstown Motors issued a recall of 19 vehicles after it was discovered that a faulty electronic component caused the Endurance to lose propulsion. Once the vehicle is stopped, “it may automatically shift in neutral” and not restart, according to this NHTSA filing by Lordstown Motors.
Lordstown Motors identified that the source of the problem was a defective busbar that fed electricity to the Endurance’s four hub motors. The supplier, Chinese-based Amphenol Interconnect Products Corp., has developed a new version of the component that would be used in all future vehicles, and those that have been sold would be recalled and the parts replaced.
Meanwhile, production of the Endurance remains on hold as the company works out these quality and safety issues, executives say.
“The company is diligently working with suppliers on the root cause analysis of each issue and potential solutions, which in some cases may include part design modifications, retrofits and software updates,” the company said.
Hightower said the company would announce “in the coming weeks” when it would resume production of the Endurance.
“Performance issues are often discovered as an entirely new vehicle with several new technologies begins operating in new and different environments by customers,” the company noted.
Shares of Lordstown Motors, which trades under the ticker RIDE on Nasdaq, have plunged 24.7% over the last five days. On Friday, the stock briefly traded at 81 cents, the lowest value to date, before closing at 84 cents, unchanged from Thursday.
As of February 2023, Lordstown Motors has completed or is in the process of completing approximately 40 trucks, the company said. A total of six vehicles have been sold.
Lordstown Motors plans to produce a first batch of 500 vehicles this year, Hightower said.
That’s well behind last year’s projections. In February 2022, the company said that it was on track to produce 500 Endurance pickups during that calendar year and 2,500 in 2023.
Lordstown Motors is currently seeking a partnership with another manufacturer to invest in and co-develop the Endurance. Without such an investment, the company could be forced to again halt production of the vehicle.
“Should we not identify a partner in the coming months, we may decide to pause commercial production of the Endurance until a partner is identified,” Hightower said during the March 6 call. Currently, the cost to produce the Endurance is substantially higher than its base sale price of approximately $65,000.
“It’s an upside down margin on each one,” Hightower said of the Endurance. “We believe the most prudent decision is to bring on a partner.”
Lordstown Motors has an investment agreement to produce future vehicles with Taiwanese tech giant Foxconn at Foxconn’s manufacturing plant in Lordstown. However, it does not have such an agreement to continue production of the Endurance.
Foxconn purchased its plant, a former General Motors assembly factory, from Lordstown Motors in May 2022 for $230 million.
Lordstown Motors began production of the Endurance in late September of 2022 and started commercial deliveries that November.
Pictured at top: File photo of production.
Copyright 2023 The Business Journal, Youngstown, Ohio.
Monday, March 13, 2023 Dan O'Brien
Lordstown Motors’ Legal Issues Pile Up
Electric-vehicle manufacturer Lordstown Motors Corp. earmarked nearly $34 million last year toward legal expenses to address litigation and investigations by federal agencies, according to the company’s latest regulatory filing with the U.S. Securities and Exchange Commission.
According to financial disclosures filed March 6, Lordstown Motors reports its selling, general and administrative expenses stood at $138.3 million as of Dec. 31, 2022, “including $33.9 million in litigation accruals.”
Lordstown Motors also recorded $11.4 million in direct legal expenses for the year.
The company or its directors and former directors face extensive legal challenges from shareholder derivative lawsuits, consolidated securities class action lawsuits, a complaint alleging Lordstown Motors violated trade secrets and investigations by the SEC and the U.S. Department of Justice, regulatory filings say.
In October 2020, Karma Automotive LLC filed a complaint in the U.S. District Court for the Central District of California alleging Lordstown Motors, along with several former and current officers and employees, “brazenly stole secrets” from Karma and poached a specialized team of employees. The litigation is ongoing, and the court has scheduled a trial to begin April 11.
“The company is continuing to evaluate the matters asserted in the lawsuit and is vigorously defending against Karma’s claims,” Lordstown Motors stated in its regulatory filing. “The company continues to believe that there are strong defenses to the claims and any damages demanded.”
Between March 18 and May 14, 2021, six securities class action lawsuits were filed in U.S. District Court for the Northern District of Ohio against Lordstown Motors, according to records.
These suits were filed in the wake of short-seller Hindenburg Research’s scathing analysis of Lordstown Motors that March. The report alleged the company and its executives inflated the number of preorders for its inaugural vehicle, the all-electric Endurance pickup.
A subsequent internal inquiry found that executives had made public misstatements about the Endurance. Lordstown Motors founder and CEO Steve Burns, along with the company’s chief financial officer, resigned in June 2021.
The lawsuits, which have since been consolidated, allege the company and individual defendants made “material false and misleading statements” related to preorders of the Endurance and its production timeline, according to regulatory filings.
The value of Lordstown’s shares began to nosedive shortly after the Hindenburg report. On Feb. 12, 2021, shares of Lordstown Motors, which trades on Nasdaq under the ticker RIDE, closed at $26.91 per unit. By May 14, its share value had plummeted to $7.33.
On Friday, the stock briefly traded at 81 cents, the lowest value to date, before closing at 84 cents, unchanged from Thursday.
The Hindenburg report also unleashed a series of stockholder derivative lawsuits against company directors and officers and former officers of DiamondPeak Holdings Corp., the blank-check company that took Lordstown Motors public in October of 2020.
Between April 28, 2021, and Dec. 2, 2021, six stockholder derivative lawsuits were filed against officers, directors or former officers and directors of Lordstown and DiamondPeak. Four were filed in U.S. District Court for the District of Delaware and are now consolidated. One complaint was filed in the U.S. District Court in Northern Ohio and another in the Delaware Court of Chancery.
These complaints allege that DiamondPeak and Lordstown Motors executives, officers or former officers and employees breached their fiduciary duties, engaged in insider selling and received “unjust enrichment” as result, documents show.
Also, two class action lawsuits were filed against DiamondPeak directors and DiamondPeak Sponsor LLC on Dec. 8 and 13, 2021.
And Lordstown Motors acknowledged in 2020 that it had received two subpoenas from the SEC requesting documents related to the company’s merger with DiamondPeak and preorders of the Endurance. It was also informed that the U.S. Attorney’s Office for the Southern District of New York was investigating these matters, filings show.
“The company has cooperated, and will continue to cooperate, with these and any other regulatory or governmental investigations and inquiries,” the latest SEC filing states.
Lordstown Motors stated in its filing March 6 that it has already racked up substantial legal costs. “We have already incurred, and expect to continue to incur, significant legal expenses in defending against these claims,” the filing says. Moreover, the company warned that its insurance might be insufficient to cover losses associated with any legal settlements or court orders, the filing noted.
Lordstown Motors’ legal issues compound other challenges facing the company, including quality matters with the Endurance and production costs.
Since Burns’ resignation in June 2021, Lordstown Motors has completely overhauled its management team and business structure. In May 2022, the company sold its Lordstown manufacturing plant to Foxconn for $230 million and has secured another $100 million investment toward the development of future vehicles. Production of the Endurance officially began during the third quarter of 2022, and commercial sales of the vehicle began last November.
The company has struggled with securing enough capital to maintain limited production of the Endurance and is actively searching for an original equipment manufacturer, or OEM, to invest in the Endurance.
On March 6, the company cautioned that it could “pause” production of the Endurance pickup this year should it not find a partner to co-develop its flagship vehicle.
“Should we not identify a partner in the coming months, we may decide to pause commercial production of the Endurance until a partner is identified,” its president and CEO, Edward Hightower, said during a conference call with analysts to discuss the company’s 2022 year-end and fourth-quarter earnings.
As it stands, Hightower says, the cost to build the Endurance is materially higher than its sale price.
While the company has an investment agreement with Foxconn to develop future vehicles, it does not have one for the Endurance.
“It’s an upside down margin on each one,” Hightower says of the Endurance. “We believe the most prudent decision is to bring on a partner.”
Discussions with potential partners are ongoing, he adds.
The statements come on the heels of a voluntary recall the company initiated last month that has already led Lordstown Motors to temporarily halt production of the Endurance. The recall affected 19 vehicles either in customers’ hands or owned by the company. To date, Lordstown Motors reports that it has sold six vehicles.
Hightower says the company would announce “in the coming weeks” when it would resume production of the Endurance.
Meanwhile, the CEO says a new vehicle is in the works with Foxconn, and he remains optimistic about the future of Lordstown Motors.
“The next platform and vehicle program are key to Lordstown Motors’ long-term business strategy and are becoming a greater portion of our company’s focus,” Lordstown Motors said.
Copyright 2023 The Business Journal, Youngstown, Ohio.
LMAO! lets blame everyone else because we put all our eggs in a single basket!
11/2-year-old news below.
Lordstown Motors says CEO and CFO have resigned
Jun 14, 2021
It really upsets me that Steven Burns has gotten away with such blatant fraud. If we're going to operate like a lawless 3rd world country in our finance sectors, then that is what we will be.
Interesting hiring activity for Lordstown posted on reditt:
Recent Lordstown Job Postings
Posting from the last week as posted on the Lordstown Motors website. The Strategic Buyer of Stamping is intriguing. Would this be for smaller items or will they also outsource the larger components to be assembled by Foxconn?
[**Vehicle Electrical System Validation Manager**](https://recruiting.paylocity.com/Recruiting/Jobs/Details/946107)
03/12/2023 - Electrical
Farmington Hills, MI
[**Linux System Admin/Network Engineer**](https://recruiting.paylocity.com/Recruiting/Jobs/Details/1590505)
03/9/2023 - IT
Farmington Hills, MI
[**Strategic Buyer - Stamping**](https://recruiting.paylocity.com/Recruiting/Jobs/Details/1192878)
03/8/2023 - Purchasing
Farmington Hills, MI
[**Interiors Engineer - Intern**](https://recruiting.paylocity.com/Recruiting/Jobs/Details/1588156)
03/8/2023 - Interiors
Farmington Hills, MI
[**DRE - Wiper/Washer, Mirror & Lamps**](https://recruiting.paylocity.com/Recruiting/Jobs/Details/1584409)
03/7/2023 - Exterior Engineering
Farmington Hills, MI
Amazon breaking exclusivity agreement with RIVN.
Now open to buying trucks from other suppliers.
This tells me that AMZN concerned about likely price increase by RIVN and this is probably part of the renegotiation. RIVN is between a rock and a hard stand.
Could be beneficial to RIDE. Just my opinion.
I believe MIH and RIDE are working on a van!
Endurance is one of the first 100 EV's to be produced by MIH EV
Ford and Rivian? You mean the companies that produced THOUSANDS of trucks?
Foxconn is still manufacturing through MIT EV platform.
LMC management stopped the Endurance but the C, Monarch and
another BEV to be announced by Hightower are still being produced.
Foxconn does not report to the SEC and do not have to do anything.
LMC management did the right thing to correct the component
before shipping more trucks out. Ford and Rivian weren't prepared
and look what's happening with them
This MIT EV video from Foxconn explains the future and that LMC
Endurance is one of the first 100 EV's as seen in the video. Words
are spelled out in English at the bottom.
Seems we have strong supporters and strong doubters here, I respect both sides and opinions.
The hard truth as we all know is that RIDE till this point in the game has performed poorly from a management and production standpoint . You can’t say one thing about production and expect the SP to move when you fail to deliver . End of story!
They need strong positive news to move the stock higher … if that occurs in the next 4-6 months, It could see $3.00 -$5.00 by late summer, If not the price will remain sub $1.00.
Time will tell- thanks for everyone’s post and feeds , all valued here.
Best
WW
Steve Burns sold at $.87 …. When next $.47 ?
https://www.salemnews.net/news/neighborhood-news/2023/01/burns-sheds-more-lmc-stock/
Most of the noise in social media is not from sources cited. Rather from those citing sources.
I listened to CC. All the negative noise in social media is bullshit traders and shorts trying to manipulate.
This company will be just fine!
Manipulators site!
I believe so but the way this market is headed and Production still halted there is only one way but down unless you get some news. IMO
$RIDE reiterated to SOLD !
https://bidaskclub.com/news/company/2023-03-07/RIDE
I did my DD and don't need to ask questions to Steve Burns
or wonder. SMH
I posted enough for anybody to either research more or don't.
Call the company or Steve Burns if you need more info
than what's already been made public
I'm rock solid with my position. I get it and know where RIDE is
going without asking for help or questioning others. I'm good
Maybe Foxconn doesn’t view it as bleeding but investing because they have information that you don’t!
So if we keep heading North of 0.80 you have lost your golden opportunity!
$.60 is my target here 140 million bare bones market cap .Steve Burns cashed out about 59 million dollars so far and still no indictments by the SEC. I believe soon the SEC will act but is taking way too long here.
Wonder how long Foxconn can bleed money on LMC before ditching all the shares. Maybe we should ask Steve Burns how long it took him.
6.3 million square foot operating. The cost of overhead is astronomically high on the old buildings. NOTHING being produced. How long can you dump money before take some kind of action
It's in the filings. RIDE 45% Foxconn 55%
RIDE 45% MIH EV partnership. Foxconn 55% It's in the filing.
Huge! Equates to the reason for the Foxconn 170 million investment
for 100% RIDE preferred shares and 18% of the common.
It's in the filings and explains the massive $170 million investment and
the partnership.
They filed the top notch partnership with the SEC.
RESEARCH! will show the massive worldwide collaboration
And still no answer as to what EXACTLY accrues to RIDE from MIH. Just BS.
Who is “us”? Not just RIDE. He’s including Foxconn in that sentence, so it’s is meaningless for evaluating just what RIDE will get out of it.
Foxconn is the largest RIDE shareholder. MIH EV is
Lordstown/Foxconn Partnership and why Foxconn also
owns 100% of RIDE preferred shares and 18% of the common.
This Partnership is much bigger than Procter and Gamble of the past
who also chose Ohio as their headquarters for American multinational consumer goods.
Foxconn/Lordstown MIH EV partnership will soon lead the way with
the MIH EV production and manufacturing of EV parts, accessories and
EV components. This supply chain being created will be massive.
This Hiightower Quote,proves otherwise. MIT RESEARCH! below.
Every truck has been recalled. Nice.
Foxconn took the MIH, no need for LMC to continue. It’s over
3rd March Recalled report says 2% (5) vehicles are affected
Some brake washer is the problem.
Sounds like the supplier will be responsible for all costs of the recall.
This is news from November 7th 2022. They need more money this little hiccup in production most likely cost them over 20 milllion . IMO
Production halted for what, another week.
Sorry, don’t expect to see 0.60.
At $.25 would put LMC at around a 50 million market cap . $.60 is a bit more reasonable puts the market cap around 120 million. This may get a jump to $1.00 soon but the downside is greater now with production halted. IMO
I’ll place my bet with Lordstown/Foxconn!
You might want to rethink your strategy on waiting for .25.
0.80’s is a golden entry point, and many are bound to miss it again!
Sounds good. I’ll be waiting for it to drop below $0.25 very soon. Then buy.
MIH has everything to do with LMC SMH
Lordstown Motors and Foxconn Broaden Strategic Partnership
Lordstown Motors Corp. (“Lordstown Motors” or “LMC”) (Nasdaq: RIDE), an original equipment manufacturer of electric vehicles focused on the commercial fleet market, and Foxconn Ventures Pte. Ltd., an affiliate of global technology company Hon Hai Technology Group (“Foxconn”) (TWSE: 2317), today announced that they reached an agreement pursuant to which Foxconn agreed to make additional equity investments in LMC (collectively, the “Investment Transactions”) in the form of $70 million of LMC’s Class A common stock, $0.0001 par value per share (the “Common Stock”), and up to $100 million of a newly created Series A Convertible Preferred Stock, $0.0001 par value per share (the “Preferred Stock,” and together with the Common Stock, the “Securities”). Upon completion of the Investment Transactions, Foxconn is expected to hold all of LMC’s outstanding Preferred Stock and 18.3% of its Common Stock on a pro-forma basis, and will have the right to designate two members of LMC’s Board of Directors.
Lordstown Motors will use the proceeds from the sale of the Common Stock for general corporate purposes and the proceeds from the sale of the Preferred Stock to fund development and design activities for a new electric vehicle program in collaboration with Foxconn (the “EV Program”). The $100 million direct Preferred Stock investment replaces the joint venture funding previously announced by Foxconn and LMC.
Pursuant to the agreements governing the Investment Transactions, at an initial closing expected to be held on or about November 22, 2022 (the “Initial Closing”), subject to customary conditions, Foxconn will purchase an aggregate of approximately 12.9 million shares of Common Stock at a purchase price of $1.76 per share, resulting in total proceeds of $22.7 million, and 300,000 shares of Preferred Stock at a purchase price of $100 per share, resulting in total proceeds of $30 million. The remaining shares of Preferred Stock will be purchased by Foxconn based on achieving certain EV Program funding milestones to be agreed-upon by the parties. Following receipt of applicable regulatory approvals, including a review by the Committee on Foreign Investment in the United States (“CFIUS”), and subject to other customary conditions, Foxconn will purchase an additional 26.9 million shares of Common Stock at a purchase price of $1.76 per share, resulting in total proceeds of approximately $47.3 million (the “Subsequent Common Closing”). Pursuant to the transaction agreements, Foxconn has also been granted the right to participate in future equity offerings by LMC to prevent dilution of its ownership interest.
The agreements governing the Investment Transactions provide, among other things, that:
Conversion Rights and Limitations: Upon certain terms and conditions, Foxconn can convert the Preferred Stock into shares of Common Stock and LMC can force a conversion of the Preferred Stock into shares of Common Stock, in each case, at a conversion price of $1.936, subject to customary adjustments. Conversion of the Preferred Stock is subject to the following ownership limitations (the “Ownership Limitations”): the Preferred Stock cannot be converted if Foxconn would own in excess of 9.99% of LMC’s outstanding Common Stock at any time prior to CFIUS clearance and the Subsequent Common Closing, or 19.99% of LMC’s outstanding Common Stock at any time prior to LMC obtaining stockholder approval.
Voting Rights and Limitations: The Preferred Stock is generally entitled to vote with the Common Stock as a single class on an as-converted basis. However, Foxconn is not entitled to vote its Preferred Stock to the extent that Foxconn would have the right to vote in respect of its Common Stock, Preferred Stock, or other capital stock an amount that would exceed the Ownership Limitations.
Standstill: Until at least December 31, 2024, without approval of LMC’s Board of Directors, Foxconn is prohibited from acquiring any equity securities of LMC if after any such acquisition Foxconn and its affiliates would own in excess of the following amounts of LMC’s voting stock:
9.99%, at any time prior to CFIUS clearance and the Subsequent Common Closing;
19.99%, at any time prior to LMC obtaining stockholder approval; and
24%, at all times following the Subsequent Common Closing and after receipt of the requisite stockholder approval.
Board Representation: Foxconn will have the right to appoint two designees to LMC’s Board of Directors after receiving CFIUS clearance and consummation of the Subsequent Common Closing. Foxconn will relinquish its Board seats if it does not maintain a certain level of ownership of LMC’s capital stock.
Voting Agreement: Until at least December 31, 2024, Foxconn has agreed to vote all of its shares of Common Stock and Preferred Stock (to the extent then entitled to vote) in favor of each director recommended by the Board and in accordance with any recommendation of the Board on all other proposals (other than any action related to any merger or business combination or other change of control transaction or sale of assets).
Participation Rights: Following the Subsequent Common Closing, other than with respect to certain excluded issuances, Foxconn has the right to participate in securities offerings proposed to be made by LMC, provided, that LMC is not required to sell Foxconn securities if LMC would be required to obtain stockholder approval under any applicable law or regulation.
Termination of Existing JV Arrangement: LMC and Foxconn have agreed to terminate the existing joint venture arrangement between Lordstown EV Corporation and Foxconn EV Technology, Inc. The EV Program and future vehicle development are expected to take place within LMC.
Daniel Ninivaggi, Executive Chairman of LMC commented, “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. Our Board of Directors and management team strongly believe that deep collaboration with the Foxconn EV ecosystem, including the Mobility-in-Harmony (MIH) open-source platform, offers tremendous opportunities to meet our mutual ambition to accelerate EV adoption globally. I look forward to welcoming Foxconn representatives to our Board and exploring other ways to deepen our partnership.”
Edward Hightower, CEO and President of LMC commented: “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. The combination of LMC’s experienced vehicle development team, Foxconn’s growing EV ecosystem, the MIH platform, and our asset-light business model will allow us to bring great EVs to market faster and more efficiently.”
About Lordstown Motors Corp.
Lordstown Motors is an original equipment manufacturer (OEM) of electric vehicles focused on the commercial fleet market, with the Endurance all electric pick-up truck as its first vehicle being launched at the Foxconn EV plant in the Lordstown, Ohio facility. Lordstown Motors has engineering, research and development facilities in Farmington Hills, Michigan and Irvine, California. For additional information visit www.lordstownmotors.com.
Contacts:
Investors
Carter W. Driscoll, CFA
IR@lordstownmotors.com
Media
Colleen Robar
crobar@robarpr.com
313-207-5960
https://ih.advfn.com/stock-market/NASDAQ/lordstown-motors-RIDE/stock-news/89486749/lordstown-motors-and-foxconn-broaden-strategic-par
MIH is a different company. It really nothing to do with LMC.
MIH is the frame the truck rides on. And a separate entity.
RESEARCH will show Lordstown 45% Foxconn 55% partnership MIH EV
Lordstown Motors is here to stay.
Foxconn is now building an Empire with a new 700mn investment in India
for an EV and phone component hub.
When it drops to $0.10 next week. I might buy. Just because
Nu Ride's new five-person board is expected to appoint William Gallagher, managing director of M3 Partners — a transaction advisory firm in New York — as Nu Ride's president and CEO, according to the regulatory filing.
Gallagher faced a situation similar to Nu Ride as CEO at WMIH Corp., the public acquisition corporation that succeeded Washington Mutual Inc. — the parent of WaMu Bank in Seattle that was seized by federal thrift regulators in fall 2008. By January 2015, the shell company left over from the failure of Washington Mutual had raised close to $600 million to pursue acquisitions of financial companies that could benefit from its huge, tax-deductible losses, according to a report by the Seattle Times.
Gallagher took over as leader of WMIH in May 2015 "to oversee its acquisition strategy and manage its day-to-day affairs," according to M3 Partners.
He was responsible for "reviewing, vetting and analyzing a large number of potential target companies from a variety of different sectors and industry groups," M3 says.
"Ultimately, WMIH acquired Nationstar Mortgage Holdings to form Mr. Cooper Group," M3 says. Gallagher departed from WMIH after closing the Nationstar acquisition in July 2018.
Bill Gallagher has more than 35 years of experience in finance, investment and financial restructurings. He brings deep expertise in credit analysis and has long-term management experience in the financial services industry.
Prior to joining M3, Bill was the Chief Executive Officer at WMIH Corp (NASDAQ:WMIH), a public acquisition corporation which was the successor to Washington Mutual, Inc., from May 2015 to July 2018. Bill was recruited to WMIH to oversee its acquisition strategy and manage its day-to-day affairs. While there, he worked closely with WMIH’s strategic financial partner, Kohlberg Kravis Roberts & Co. At WMIH, Bill’s responsibilities included reviewing, vetting and analyzing a large number of potential target companies from a variety of different sectors and industry groups. Ultimately, WMIH acquired Nationstar Mortgage Holdings (NYSE symbol NSM) to form Mr. Cooper Group (NASDAQ:COOP). Bill departed from WMIH upon the closing of the acquisition of Nationstar as his job at WMIH was completed.
Prior to WMIH, Bill was CEO and Chief Risk Officer at Capmark Financial Group, formerly known as GMAC Commercial Mortgage (from March 2009 to May 2015). Bill was retained by Capmark to manage its financial restructuring following the global economic crisis and was responsible for the management of the company’s day-to-day affairs, the restructuring of both the company and its assets (including its $15 billion commercial loan portfolio), its bankruptcy process, and its winding down and distribution of assets to creditors and other stakeholders. Capmark was a highly successful restructuring as Bill and his colleagues significantly increased the recovery value to Capmark’s creditors.
Before joining Capmark, Bill was the Chief Credit Officer of RBS Greenwich Capital, the US fixed income investment banking business of the Royal Bank of Scotland, where he was responsible for all aspects of credit risk management. While at RBS Greenwich, Bill was responsible for a wide variety of US corporations and buy-side companies, including corporate borrowers and debt issuers, financial institutions, industrial companies with captive finance businesses, and a variety of US corporations who traded various securities with or through RBS Greenwich.
Earlier in his career, Bill was a Vice President at First Boston Corporation in that firm’s credit risk management department. At First Boston, Bill was responsible for managing credit risk to a wide variety of corporate issuers and financial institutions. Bill began his career at Chemical Bank, where he completed the bank’s credit training program and then worked as a loan officer in the middle market division and a credit officer in the financial institutions division.
Bill has a B.S. in business administration from Syracuse University and an MBA from New York University.
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