Lordstown opts for reverse stock split to meet Nasdaq rules, appease Foxconn
Technology
Lordstown opts for reverse stock split to meet Nasdaq rules, appease Foxconn
(Reuters) - Lordstown Motors Corp (RIDE.O) said on Tuesday it will carry out a reverse stock split to meet the Nasdaq listing norms and to appease investor Foxconn (2317.TW), which had threatened to scrap a crucial $170 million funding.
The 1:15 split will happen on May 24, the electric vehicle startup said but added there was no assurance that the Foxconn deal will close.
Lordstown Motors shares fell 10% in premarket trading to $0.26, slipping further below the $1 minimum requirement of the Nasdaq.
The company had earlier this month warned it might be forced to file for bankruptcy due to uncertainty over the investment from Foxconn.
