Troubled electric truck maker Lordstown Motors, which went public via SPAC last year, said this morning in an 8-K filing that its CEO and CFO were stepping down — just one week after warning that the company could go out of business.
Shares of Lordstown plunged nearly 20 percent today in early trading on the news. Lordstown didn’t give a reason for the departures of CEO Steve Burns and CFO Julio Rodriguez.
In a regulatory filing last week, Lordstown said it will not be able to begin commercial scale production without raising more money from investors and lenders.
“If we are unable to raise additional capital in the near term, our operations and production plans will be scaled back or curtailed and, if any funds raised are insufficient to provide a bridge to full commercial production and generation of sufficient funds from operations, our successful operation and growth would be impeded,” the filing states.
The company has been under investigation by the SEC since February. The investigation is focused on the company’s $1.6B merger last fall with DiamondPeak Holdings, as well as preorders for its vehicles. Read more.
