© Reuters Former Lordstown (RIDE) CEO and founder fully divests remaining stake
According a regulatory filing, Wednesday, it appears that Lordstown Motors Corp (NASDAQ:) founder and former CEO, Stephen Burns has sold his entire stake in the electric automaker.
Rivian implemented a reverse stock split back in May to comply with Nasdaq’s minimum $1 listing requirement and satisfy investor Foxconn, which had threatened to withdraw a $170 million funding offer in the cash-strapped company.
Burns sold his stake over three transactions between May and June, about 581,000 shares were divested before the company implemented the reverse split, and 791,572 shares after.
Earlier this month, Lordstown Motors declared that it would take legal action against Foxconn. The objective behind this legal move is to protect their plan of purchasing nearly 10% of Lordstown Motors’ shares and prevent any potential obstacles or disruptions to the transaction.
Burns resigned from his role as CEO in 2021, alongside former Chief Financial Officer Julio Rodriguez following an internal investigation by the company board into claims made by short-seller Hindenburg.
Lordstown acknowledged that it made an overstatement regarding pre-orders for its electric trucks. However, the company rejects Hindenburg’s allegations that it deliberately misled investors regarding production plans and exaggerated the potential of its technology. The company maintains its stance that it did not engage in deceptive practices regarding its production capabilities and the capabilities of its technology.
Shares of RIDE are down 5.62% in afternoon trading on Thursday.
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