Lordstown Motors provides production and finance update

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LORDSTOWN, Ohio, September 30, 2021 (GLOBE NEWSWIRE) – Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors” or the “Company”), a supplier of electric light trucks focused on the commercial fleet market, today announced that the Company and Hon Hai Technology Group (“Foxconn”) (TWSE: 2317) have reached an agreement in principle to jointly work on electric vehicle programs at the company’s assembly plant in Lordstown, Ohio. As part of this announcement, the Company is today updating its production plan and financial outlook.

Endurance â„¢ Production – The Lordstown Motors team continues to move forward with their plan to build a limited number of vehicles for testing, validation, verification and regulatory approvals during the remainder of this year. 2021 and the first part of 2022. In light of the Foxconn agreement, the Company will assess the potential impact of the parties’ contract manufacturing relationship on commercial production, supply chain opportunities with Foxconn and the integration and the appropriate timing of the parties’ operating teams and will provide an update on its production plan during our next Q3 The 2021 earnings call is currently slated for mid-November. See “Forward-Looking Statements” below.

Financial Outlook – The Company updates its 2021 financial outlook, last provided in its second quarter 2021 earnings call, as follows:

  • Capital expenditure – unchanged in total from $ 375 million to $ 400 million, including changes in the timing of tooling and equipment purchases and the inclusion of planned tooling expenses previously included in R&D expenditure.
  • SG&A expenses – $ 105 million to $ 120 million, up from $ 95 million to $ 105 million, mainly due to higher legal and professional fees.
  • R&D expenses – $ 320-340 million, up from $ 310 million to $ 320 million, largely due to increased prototyping and pre-production expenses, reduced by the impact of shifting planned spending from flexible tooling to capital expenditure as mentioned above.
  • Cash balance as at September 30, 2021 – $ 210 million to $ 240 million, down from $ 225 million to $ 275 million, which includes approximately $ 20 million of proceeds from the issuance of common shares under the purchase agreement. shares in the company in August and September, but excludes the proceeds from Foxconn’s $ 50 million purchase of the Company’s common stock, as announced today.

These updated financial projections for pre-production expenses can be affected by many factors, including the results of regulatory validation and testing, supply chain constraints and delays, and the timing of procurement. tools and equipment. See “Forward-Looking Statements” below.

Lordstown Motors has engaged Jefferies LLC to advise the Company on additional financing alternatives, which may include private or public private equity transactions, debt financings, or a combination thereof.

About Lordstown Motors Corp.

Lordstown Motors is an Ohio-based electric vehicle (EV) innovator that develops high quality fleet light utility vehicles. The Company has engineering, research and development facilities in Farmington Hills, Michigan and Irvine, California. For more information, visit www.lordstownmotors.com.

About Foxconn Technology Group

Established in Taiwan in 1974, Hon Hai Technology Group (Foxconn) (ticker 2317 in Taiwan) is the world’s largest electronics manufacturer. Foxconn is also the leading provider of technology solutions and continuously leverages its software and hardware expertise to integrate its unique manufacturing systems with emerging technologies. By capitalizing on its expertise in Cloud Computing, Mobile Devices, IoT, Big Data, AI, Smart Networks and Robotics / Automation, the Group has extended its capabilities not only to the development of electric vehicles, digital health and robotics, but also to three key technologies – AI, semiconductors and next-generation communications technologies – that are essential to driving its long-term growth strategy and to the four pillars of commodities: consumer products, enterprise products, products and computer and other components. For more information, visit https://www.foxconn.com/en-us/.

Forward-looking statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “” intends “,” should “,” must be ”, or the negative of these terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to not limited to: our limited operation history and our significant projected financing needs; our liquidity position; the need to raise substantial additional capital to continue ongoing operations; risks associated with converting and retooling our plant and ramping up production; our inability to secure binding purchase orders from customers and the inability of potential customers to integrate our electric vehicles into their existing fleets; our inability to retain key personnel and hire additional personnel; competition in the electric pickup truck market; supply chain disruptions; the potential inability to source essential components; our inability to develop a commercial distribution network; the ability to protect our intellectual property rights; and failure to obtain the required regulatory approvals. In addition, our tentative agreement with Foxconn is non-binding and subject to the negotiation and execution of definitive agreements. No assurance can be given that final agreements will be reached on the terms envisaged, if at all. No assurance can be given either as to the timing of such agreements. In addition, potential supply chain disruptions and their impact on testing and other activities could present challenges that would impact our commercial production schedule. Forward-looking statements speak only as of the date on which they are made, and Lordstown Motors does not undertake to update any forward-looking statements to reflect events or circumstances subsequent to the date of this press release.

Contacts:

Investors
Carter W. Driscoll, CFA
[email protected]

Media
Kimberly Fate
[email protected]


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