One year ago, former Vice President Mike Pence rode in a new electric pickup from Lordstown Motors and proclaimed it was a new day for the Mahoning Valley.
Ohio officials hailed the company as a savior for the region after General Motors shut down its Chevrolet Cruze operation and took thousands of union jobs with it. The promise was a bold one: Lordstown would manufacture trucks that get the electric power equivalent of 75 miles per gallon of gas.
Now, the plant s future is in question as Lordstown faces multiple investigations and allegations that executives mislead investors about vehicle pre-orders. The politicians who cheered the deal want answers but some contend there were warning signs from the beginning.
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Lordstown Motors receives $400 million investment from hedge fund
Detroit Lordstown Motors Corp. has received a $400 million equity investment from a New Jersey-based hedge fund to help the startup launch and accelerate production of its Endurance electric truck in September.
The Ohio-based startup and YA II PN Ltd., a fund managed by New Jersey-based Yorkville Advisors Global LP, formed an equity purchase agreement on July 23 in which YA agreed to purchase up to $400 million of Lordstown s Class A common stock with the price equaling or exceeding $7.48 per share, according to a filing Monday with the Securities and Exchange Commission.
Lordstown s stock jumped 10% after the announcement, but then declined throughout the trading session and closed down 2.5% at $7.29 per share. The investment comes after months of struggle for the startup, which told the SEC last month it might not survive the next year without additional funding. Lordstown is one of several aut
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