Foxconn finalizes $50 mln stock deal with Lordstown Motors

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Nov 10 (Businesshala) – Lordstown Motors Corp (RIDE.O) said on Wednesday that Taiwan’s Foxconn has bought $50 million worth of stock from the US electric vehicle maker, finalizing an equity investment it announced in September.

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Lordstown said Foxconn acquired shares for $6.9883. The stock, which closed at $5.56 in regular trading, rose nearly 10% to $6.11 after the bell.

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In September, Foxconn said it would buy the Lordstown-owned Ohio Plant assembly plant and produce the American company’s Endurance full-size pickup truck for $230 million.

Foxconn — the world’s largest contract electronics maker best known for assembling Apple’s iPhones — agreed to make a $100 million down payment by November 18.

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

Lordstown said the deal was expected to be completed by 30 April.

Earlier in the day, Lordstown said longtime automotive industry executive Edward Hightower would take over as chairman.

Lordstown shares have lost more than 70% of their value this year. The company will present its third quarter results on Thursday.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila

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