Lordstown Stock Down 12 % On Reverse Stock Split

Shares of manufacturer of electric vehicles Lordstown Motors Corp. (RIDE) were down 12% on Wednesday after it announced that it will issue a reverse stock split to meet Nasdaq listing norms and salvage a deal with Taiwanese manufacturer Foxconn.

RIDE is currently trading at $3.71, down 12.82% or $0.54 per share, on Nasdaq. It has traded between $3.62 and $55.95 in the past 52-week period.

The Reverse Stock Split will automatically cause each 15 shares of the Company's issued and outstanding Class A common stock to be combined into one, the 1:15 split has been scheduled for May 24.
Lordstown Motors has been struggling with dwindling cash balances and production challenges because of the recession and economic uncertainty. The company had previously stated that it might be forced to file for bankruptcy due to uncertainty over the investment from Foxconn.

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