Hyperdrive
Lordstown May Raise up to $400 Million From Investment Fund
- Deal could help patch cash needs for struggling truckmaker
- Structure is similar to a plan reached by Nikola in June
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Lordstown Motors Corp., the electric-vehicle startup struggling to find cash to move into production, reached a deal to sell as much as $400 million in stock over the next three years to an investment fund managed by Yorkville Advisors Global.
The terms allow the Ohio-based truckmaker to direct the fund to buy a tranche of Class A shares equal to as much as 30% of a day’s trading value of the stock or a block of $30 million, the EV maker said in a regulatory filing Monday. When those sales take place, the buyer benefits from a 3% discount off the stock’s three-day average market price.