Lordstown Motors’ Founder and former CEO, Stephen Burns, has recently made headlines with the complete sale of his ownership in the electric-vehicle manufacturer. A regulatory filing confirmed the divestment, revealing that Burns conducted three separate transactions between May and June.
Prior to the reverse stock split implemented by the company in May, Burns sold approximately 581,000 shares, followed by the sale of 791,572 shares post-split. Lordstown Motors, currently facing financial challenges, has refrained from providing any comments on the stake sale.
This development comes after Lordstown Motors initiated a reverse stock split to meet Nasdaq’s requirement of maintaining a minimum $1 listing and to address concerns raised by investor Foxconn. The Taiwanese contract manufacturer had threatened to withdraw its $170 million funding from the struggling company. In response, Lordstown Motors took action to appease Foxconn and safeguard the crucial investment.
In a separate incident earlier this month, Lordstown Motors announced its intention to pursue legal recourse against Foxconn. The objective was to secure the planned acquisition of nearly 10% of Lordstown’s shares, ensuring that the purchase would not be derailed. The company seeks to protect its interests and maintain stability amidst ongoing challenges.
Stephen Burns’ departure from the CEO position in 2021, alongside then Chief Financial Officer Julio Rodriguez, followed an internal investigation prompted by allegations made by short-seller Hindenburg. While Lordstown Motors acknowledged that it had exaggerated pre-orders for its electric trucks, it vehemently denied Hindenburg’s accusations regarding misleading investors about production plans and overstating the potential of its technology.
Lordstown Motors continues to navigate its way through these controversies, striving to regain investor confidence and establish a solid foundation for its future endeavors in the electric-vehicle market.
