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Lordstown Motors finalizes factory sale to Foxconn
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Lordstown Motors has closed a deal to sell its 6.2 million-square-foot Ohio factory to Foxconn for $230 million plus the reimbursement of approximately $27 million in operating and expansion costs.
The deal gives Lordstown Motors a much-needed lifeline after burning through nearly all the cash raised during its merger with special purpose acquisition company DiamondPeak Holdings in October 2020. If the sale wasn’t completed before May 18, Lordstown would have had to pay back a $200 million deposit put down by Foxconn.
As part of the deal, Foxconn previously purchased $50 million of Lordstown's Class A common stock.
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Lordstown Motors purchased the Ohio plant in 2019 from General Motors for $20 million, with the help of a $40 million loan from GM.