NU Ride Inc (NRDE)

[dss19552002]

Did Foxconn pay for the plant?

The purchase price for the Lordstown facility consisted of $230 million and a reimbursement payment for certain operating and expansion costs incurred by Lordstown EV from September 1, 2021 until the APA Closing. Foxconn made down payments of the purchase price totaling $200 million through April 15, 2022, of which $100 million was received during the nine months ended September 30, 2022. The $30 million balance of the purchase price and a reimbursement payment of approximately $27.5 million were paid at the APA Closing; $17.5 million was attributable to the reimbursement of certain operating expenses reported in research and development and $10 million was attributable to expansion costs. Under the terms of the APA, the $17.5 million reimbursement costs were an estimate which was subsequently increased to $18.4 million as of September 30, 2022.

The above quote is from RIDE/NRDE September 30, 2022 10-Q. At worst, Foxconn owes $30 million. However, RIDE admits to being paid the full purchase price for the plant. The APA is complete. What am I missing? The real question is the 2nd investment agreement, and I'm not tracing that one through the system right now. How much did Foxconn pay? It seems they didn't pay that whole amount, but they already own the plant. The investment agreement wasn't for the plant. Additionally, to your point, the Lordstown owned the equipment in the plant, which might be what you are thinking about. During the bankruptcy asset sale, if they sold that to LandX, that claim becomes moot, as if Foxconn didn't pay for that equipment, they have no rights to it at all, unless they made a downpayment on that equipment. The $170 million was an investment agreement and is a different animal. So, as I said 2 years ago, the plant Foxconn owns without a doubt, but the investment agreement is one that Foxconn claims that then Lordstown defaulted on with the delisting notice. That's up to interpretation, and isn't fraud, as near as I can tell. Nu Ride will not, therefore, get the plant back. Make no mistake about it. However, I do agree that Nu Ride will get cash from the lawsuit in all probability.

I don't know what the picture of the car is in your post either. That one was NEVER Lordstown, and certainly not Nu Ride.