Lordstown Motors Corp RIDE shares are trading lower by 25.79% to $0.39 Monday morning after the company said it has substantial doubt regarding the ability to continue as a going concern and may need to curtail or cease operations and seek bankruptcy protection if uncertainties are not resolved.
What Else?
Lordstown says the company is concered regarding its ability to facilitate cost-effective production of the Endurance, which requires a strategic partner and significant additional capital, including to invest in the tooling to lower the bill of materials cost, continue design enhancements and enable scaled production.
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Among other concerns addressed by the company, Lordstown Motors addressed the impact of the company's non-compliance with Nasdaq's bid price requirement and the ability to regain compliance as a result of the proposed reverse stock split which was proposed for approval by stockholders at the company's annual meeting.
Shares of Lordstown Motors have also fallen some 79% over the trailing six months amid a market correction in the broader EV- and EV-components space.
According to data from Benzinga Pro, RIDE has a 52-week high of $3.73 and a 52-week low of $0.38.
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