SEC Seeks Merger Documents from Lordstown Motors
YOUNGSTOWN, Ohio – The Securities and Exchange Commission has specifically requested documents related to Lordstown Motors Corp.’s preorders for its electric pick up truck and its merger with DiamondPeak Holdings Corp., according to Lordstown Motors’ annual report filed Thursday morning.
DiamondPeak, a special purpose acquisition company, or SPAC, acquired Lordstown Motors in October with the intent of taking the company public.
According to the annual report, the company received on Feb. 17 “a request from the SEC for the voluntary production of documents and information, including relating to the merger between DiamondPeak and Legacy Lordstown and pre-order of vehicles. The company is responding to the SEC’s requests and intends to cooperate with its inquiry.”
Lordstown Motors CEO Steve Burns disclosed the SEC inquiry March 17, less than a week after Hindenburg Research published a blistering report that alleges the EV startup misled investors. The report alleged Lordstown Motors concocted most of its 100,000 preorders and is likely to miss production targets of the Endurance.
Company shares plummeted more than 16% on the heels of the Hindenburg report and fell further after disclosure of the SEC inquiry.
Lordstown Motors began trading Oct. 26 on Nasdaq under the ticker symbol RIDE.
The stock stock peaked at $30.75 in February. By mid-day trading on March 25, the stock had dropped to $11.36 per share, down 63% since its peak value.
The annual report identifies “uncertainties related to litigation, regulatory actions and government investigations and inquiries,” among a long list of risks facing the company.
Copyright 2021 The Business Journal, Youngstown, Ohio.