Lordstown Motors Gets Nasdaq Warning; Holds on to Stock Gains
LORDSTOWN, Ohio – Lordstown Motors Corp. announced late Friday that is has received a notice of delinquency from Nasdaq Stock Market LLC for failing to file its 10-Q first quarter earnings report.
The notice was expected, the company said, and has no immediate effect on Lordstown Motors’ listing or trading on Nasdaq. The company trades under the ticker symbol RIDE.
Under Nasdaq rules, the company has 60 days after it receives the notice — or July 27 — to file its quarterly report or submit a plan to regain compliance with the Nasdaq listing. The company said it would file the financial documents “as soon as possible within the timeline prescribed by Nasdaq.”
Lordstown Motors said May 18 it would delay its quarterly filings on its form 10-Q until it could file a restated annual report. The company had earlier said it would restate its 2020 earnings because of new guidelines issued by the U.S. Securities and Exchange Commission that reclassifies as liabilities — not equity — stock warrants issued at the time of Lordstown Motors’ merger with DiamondPeak Holdings Corp.
The company did, however, file an 8-K form with the SEC May 24 stating financial results for the quarter ended March 31. Those results included projections that the company would require more capital and would cut 2021 production in half of its inaugural electric vehicle, the Endurance.
Share prices of RIDE dipped in after-hours trading following the Nasdaq announcement, But Lordstown Motors held on to hefty gains the stock made this week. These gains were fueled in part by optimism posted through online investor communities on websites such as Reddit.
Lordstown Motors’ stock value has risen 27% since the opening bell on Tuesday. The startup electric-vehicle manufacturer opened the post-holiday week at $9.85 per share and closed Friday at $12.52, down 4.7% for the day. At one point, shares were trading as high as $13.40.
The RIDE stock value received a boost as traders who post discussions on the online forum Reddit started talking up companies targeted by short sellers.
Wall Street also responded positively two weeks ago when Lordstown Motors announced it would host “Lordstown Motors Week” for investors, customers, analysts and media at the plant during the week of June 21.
Other EV companies also witnessed their stock jump this week. Workhorse Group, which owns a 10% stake in Lordstown Motors, watched its share price climb as high as 68.4% to $16.14 per unit before settling at $13.05 per share on Friday, still up 36.2% for the week.
Copyright 2023 The Business Journal, Youngstown, Ohio.