Lordstown Motors founder and former CEO Stephen Burns has offered his complete stake within the electric-vehicle maker, in response to a regulatory submitting.
The corporate in Might carried out a reverse inventory cut up to adjust to Nasdaq’s minimal $1 itemizing requirement and appease investor Foxconn that had threatened to scrap a $170 million funding within the cash-strapped firm.
Burns has offered his stake in three transactions between Might and June, about 581,000 shares have been divested earlier than the reverse inventory cut up and 791,572 shares after, the submitting on Wednesday confirmed.
The EV startup declined to touch upon the stake sale.
Earlier this month, Lordstown Motors stated it deliberate to take authorized motion in opposition to Taiwanese contract producer Foxconn to make sure the deliberate buy of practically 10% of the corporate’s shares was not derailed.
Burns in 2021 resigned from the position of CEO alongside then Chief Monetary Officer Julio Rodriguez following an inside investigation by the corporate board into claims made by short-seller Hindenburg.
Lordstown has acknowledged that it had overstated pre-orders for its electric trucks however rejected Hindenburg’s claims that the corporate had misled buyers about manufacturing plans and exaggerated the potential of its expertise.
Reporting by Tanya Jain in Bengaluru; Modifying by Shinjini Ganguli