Replies to post #5128 on NU Ride Inc (NRDE)

[Saving Grace]

MIH JV, Foxconn 55% Lordstown Motors 45% The JV Funding was replaced but with the original Joint Venture still in place. Foxconn 55% Lordstown Motors 45%

Taiwanese manufacturer Foxconn is increasing its investment in EV startup Lordstown Motors by buying $170 million in common stock and newly created preferred shares.

Once the deal is complete, Foxconn will hold all of Lordstown’s outstanding preferred stock and 18.3% of its common stock on a pro forma basis. Foxconn will also have the right to two board seats, the companies said Monday.

The additional investment comes a year after the electric light-duty truck manufacturer sold its 6.2-million-square-foot Lordstown, Ohio, factory to Foxconn. As part of that $230 million deal, which included a direct investment of $50 million, Foxconn agreed to help Lordstown Motors manufacture its Endurance pickup truck. Production of the electric pickup truck began in September 2022.

This latest deal, specifically the $100 million direct preferred stock investment, replaces the joint venture funding announced last year by Foxconn and Lordstown Motors. The investment will occur in tranches and is subject to a review by the Committee on Foreign Investment in the United States.

An initial closing is expected to be held later this month. Foxconn will purchase about 12.9 million shares of common stock at a purchase price of $1.76 per share, resulting in total proceeds of $22.7 million. Foxconn will also buy 300,000 shares of preferred stock at $100 per share, resulting in total proceeds of $30 million. The remaining shares of preferred stock will be purchased by Foxconn as Lordstown Motors achieves certain milestones. After receiving approval from CFIUS, Foxconn will buy an additional 26.9 million shares of common stock at a purchase price of $1.76 per share, resulting in total proceeds of about $47.3 million.

“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,” Lordstown Motors executive chairman Daniel Ninivaggi said in a statement.

The companies said the fresh injection of capital will be used to fund development and design activities for a new electric vehicle program in collaboration with Foxconn, a manufacturing company best known for making Apple’s iPhone.

[OPKOHEALTH2022]

A $200 PPS represents about a 20 -30 billion market cap . Lucid,and Polestar market cap is hovering around 13 billion to around 17 billion . Polestar is delivering 100k EVs in 2022. When do you think LMC will be able to deliver 100k trucks ? Seems very far away .