Early Lordstown Motors Investor Workhorse Group sold 72% stake in startup

Electric delivery truck maker Workhorse Group Inc. said Monday it sold much of its stake in Lordstown Motor Corp. this summer, reducing its equity position in the embattled Ohio-based startup.

Workhorse, in a company presentation, said it had sold 11.9 million shares of Lordstown Motors since July 1, reducing its 9% stake by nearly three-quarters. Workhorse, also based in Ohio, was an early investor in Lordstown Motors, which was established in 2019 by Workhorse founder and former CEO Steve Burns.

The divestment comes ahead of Lordstown Motors’ planned electric truck launch in September. The startup has liquidity problems and is trying to raise additional capital to ensure its survival.

Going into production on Lordstrown Motors’ debut pickup truck, the Endurance, is a crucial goal for the startup, which went public last fall through a reverse merger with a special-purpose acquisition company, or SPAC.

In recent months, the company has been rocked by numerous challenges, including federal investigations into its business practices and the departure of Mr. Burns.

Source: WSJ

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