Shortly thereafter, GM found a buyer who promised to return his car job to the area. Workhorse Group, a small electric van business.. The company had a rough design for electric pickup trucks and electric helicopters.
Mr Burns decided to leave Workhorse to set up a new company to manufacture trucks, and he Agreed to purchase Lordstown factory For only $ 20 million for his new venture.
But the deal was announced very quickly — Mr. Trump said on Mr. Rose’s Twitter, “I asked her to sell it or speed something up,” so Mr. Burns said he. Money to buy a new company or factory. He turned to Brown Gibbons Lang & Company, a small Cleveland investment bank, and won an investment from GM. This provided a $ 40 million loan for factory purchases and other costs.
In August, Lordstown Motors announced that it would merge with SPAC Diamond Peak Holdings. That transaction, Completed with In just two months, it helped avoid the five to seven years normally required by start-ups to establish an initial public offering performance. For example, Tesla was released about seven years after its founding.
Ben Axler, founder of Spruce Point Capital Management, said many companies are being pressured by SPAC backers, known as sponsors, to publish before they are ready. Axler is not betting on Rosetown, but is betting on the shares of several companies that have merged with SPAC.
“We are looking at the evidence,” he said, “that is, SPACs are overpaying for lower quality businesses.”
The lack of seasonings in Lordstown should have been obvious.
In a presentation to investors, Lordstown showed that it relies on partners and suppliers, including workhorses, for many of its technology and key components. But one partnership is already sour: Karma Automotive sues LordstownAccuses you of stealing corporate secrets and trying to seduce key employees.
Lordstown Motors shares a plunge when investors see problems
Source link Lordstown Motors shares a plunge when investors see problems