Lordstown Motors Receives Nasdaq Delisting Notice After Filing For Bankruptcy

Lordstown Motors Corp RIDE said on Thursday that it received a delisting notice from Nasdaq.

What Happened: The company received the written notice from Nasdaq on Wednesday after it filed for bankruptcy protection on Tuesday.

“Nasdaq had determined that the Company's Class A common stock, par value $0.0001 per share, will be delisted from the Nasdaq Global Select Market,” the company said in a filing. It added that it does not intend to appeal the decision.

Trading of Lordstown’s class A common stock will be suspended starting July 7.

Why It Matters: Lordstown filed for bankruptcy protection on Tuesday following a drawn out dispute with Foxconn over a proposed investment of up to $170 million.

The company said that it started the sale process for its Endurance all-electric pickup truck and other related assets and has filed litigation against Hon Hai Precision Industry Co Ltd and its affiliate Foxconn Ventures Pte Ltd in the U.S. Bankruptcy Court for the District of Delaware.

Foxconn failed to live up to its financial commitments, thereby damaging the company and its future prospects, the EV maker said.

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