Cash-starved Lordstown Motors missed its deadline for closing the sale of its plant to Taiwan's Foxconn EV Technology Inc., a deal critical to the startup's execution of electric light-duty trucks focused on commercial fleets.
The two agreed to an asset purchase agreement (APA) in November 2021. Under the deal, Foxconn would purchase the 6.2 million-square-foot Lordstown complex from LMC for $230 million.
The deal was supposed to close Friday. But is being held up by details of a contract manufacturing agreement under which Foxconn would build LMC’s Endurance pickup truck. It also would seek other projects to fill the massive Lordstown complex.
Foxconn has advanced $200 million to LMC, which must be repaid by May 14 if a deal is not reached. LMC does not have the money for the repayment. Foxconn could get most of LMC's assets if it cannot pay, LMC said in a press release Friday.
The payments from Foxconn to LMC were cleared by the Committee on Foreign Investment in the United States (CFIUS) on April 9. CFIUS is an inter-agency government committee that reviews the national security implications of foreign investments in U.S. companies or operations.
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