Lordstown Motors founder and former CEO Stephen Burns has offered his whole stake within the electric-vehicle maker, in keeping with a regulatory submitting.
The corporate in Might carried out a reverse inventory break up to adjust to Nasdaq’s minimal $1 itemizing requirement and appease investor Foxconn that had threatened to scrap a $170 million funding within the cash-strapped firm.
Burns has offered his stake in three transactions between Might and June, about 581,000 shares had been divested earlier than the reverse inventory break up and 791,572 shares after, the submitting on Wednesday confirmed.
The EV startup declined to touch upon the stake sale.
Earlier this month, Lordstown Motors mentioned it deliberate to take authorized motion in opposition to Taiwanese contract producer Foxconn to make sure the deliberate buy of almost 10% of the corporate’s shares was not derailed.
Burns in 2021 resigned from the position of CEO alongside then Chief Monetary Officer Julio Rodriguez following an inner investigation by the corporate board into claims made by short-seller Hindenburg.
Lordstown has acknowledged that it had overstated pre-orders for its electrical vehicles however rejected Hindenburg’s claims that the corporate had misled traders about manufacturing plans and exaggerated the potential of its expertise.
Reporting by Tanya Jain in Bengaluru; Enhancing by Shinjini Ganguli