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LORDSTOWN — Class A shares of Lordstown Motors Corp. will start buying and selling Monday on the Nasdaq inventory alternate — a “momentous event,” its CEO mentioned, for the startup electrical truck maker because it progresses towards meeting subsequent yr.
The shares will commerce underneath the ticker image “RIDE” and its warrants will commerce on Nasdaq underneath the ticker image “RIDEW.”
Friday’s announcement comes about 4 months after a rolling prototype of the Endurance, the corporate’s battery-powered gentle responsibility pickup truck, made its public debut and simply little underneath a yr since Lordstown Motors bought from Common Motors the automaker’s meeting plant in Lordstown.
Additionally Friday, the merger of Lordstown Motors and New York-based DiamondPeak Holdings Corp., a particular function acquisition firm, was finalized. The brand new firm, price about $1.6 billion, will stay named Lordstown Motors Corp.
DiamondPeak shareholders on Thursday authorised the merger and inventory providing within the deal that’s anticipated to inject $675 million into the corporate to begin producing the truck, for which the corporate already has 40,000 preorders.
“We’re pleased with this momentous event. Electrification of the automotive business is at an inflection level, and this transaction helps us play our half on this transformation,” Steve Burns, founder and CEO of Lordstown Motors, mentioned.
“At Lordstown, we now have constructed a differentiated firm, and we sit up for combining our EV (electrical automobile) startup tradition with the infrastructure and property we have already got in place with a view to efficiently obtain our manufacturing milestones,” he mentioned.
Retooling on the 6.2 million-square-foot facility continues and the schedule stays on tempo to fulfill the corporate’s manufacturing objective of the second half of 2021. The corporate is predicted to make one other announcement in regards to the truck Monday.
The truck could have a sticker value of $52,500 earlier than tax credit and comprises 4 shifting components — the in-wheel hub motors.
“We’ve got a close to production-ready plant and roughly $675 million in proceeds from this transaction, which is greater than sufficient funding to get us via preliminary manufacturing,” Burns mentioned.
The transaction features a $500 million totally dedicated PIPE personal funding in public fairness, which is a mechanism that permits institutional buyers to put money into personal firms — that features a $75 million funding from Common Motors.
GM invested $25 million in money and its non-cash investments embody $20 million for the land, buildings and gear, and $30 million in working bills. Additionally, when Lordstown Motors bought the power in November, GM let it borrow as much as $40 million in a mortgage that terminated when the merger finalized.
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