Mon. 11:45 a.m.: Lordstown Motors gets $400 million investment
Lorsdtown Motors Corp. announced today it has a deal with a New Jersey-based investment firm to pump $400 million into the struggling electric truck startup over three years.
The company’s stock immediately jumped 8.7 percent in trading after the company announced the agreement with YA II ON, LTD., which is managed by Yorkville Global Advisors, LP, in Mountainside, N.J. It has since come back down, up about 2 percent at about 11 a.m.
According to the agreement, the investment firm has agreed to buy shares at $7.48 per share and will not engage in any short sales or hedging transactions on Lordstown stock.
The company has come under scrutiny recently over the number of orders it claimed it had for its truck, the Endurance. Last week, Lordstown Motors confirmed in a regulatory filing the U.S. attorney’s office in Manhattan is investigating the company. It is also the subject of a probe by the U.S. Securities and Exchange Commission.