Lordstown Motors is on the verge of consummating its planned merger because of the Unique Purpose Acquisition business (SPAC), DiamondPeak (NASDAQ:DPHC 20.57 -4.81percent). As soon as this continuing business combination achieves closure, the stocks associated with the combined company will record in the stock exchange under the sign RIDE.
Bear in mind that Lordstown Motors entered as a agreement that is definitive merge with DiamondPeak Holdings Corp. back in August. The deal is anticipated to appreciate the combined business at $1.6 billion, by having a investment that is PIPE of $500 million. Lordstown will utilize $675 million in gross proceeds from this deal to finance the manufacturing of its Endurance model, an pickup that is electric that is expected to introduce in 2021.
Readers should observe that the Workhorse Group (NASDAQ:WKHS 23.77 -1.78%) has a ten percent stake in Lordstown, rendering it an beneficiary that is integral of merger. Of course, today’s announcement could not have come at a much better time. The short-seller Fuzzy Panda Research accused Workhorse and, by extension, Lordstown Motors today for acting in a “far worse” manner than the embattled company, Nikola Corporation as a refresher. The brouhaha concerns expectations of Workhorse being a right part of a $6 billion U.S. Postal provider (USPS) contract. The USPS is expected to interact numerous businesses so that you can replace its aging fleet of delivery cars as a refresher. The quantum that is whole of is expected to include as much as 180,000 distribution vans. One last selection is yet to happen while interested companies were needed to submit their proposals to your USPS by the 14th of July. Nonetheless, Workhorse continues to be one of the leading contenders for the contract that is multi-billion-dollar. Lordstown Motors is on the verge of consummating merger.
Today, however, Fuzzy Panda Research published a damning report, leveling allegations that are several Workhorse and Lordstown Motors. Mainly, the short-seller alleged that Workhorse was hyping up some great benefits of winning the USPS agreement despite the fact that any benefit would be immaterial most likely. Apart from casting aspersions in the capability of Workhorse to provide on its contractual obligations if it will win this agreement, the short-seller alleged that Lordstown would be the beneficiary that is prime Workhorse lacks the capacity to build USPS automobiles.