Lordstown Motors closes deal to sell assets to Foxconn, shares surge

Lordstown Motors Corp said it has completed a deal to sell certain assets to Taiwanese contract manufacturer Foxconn, clinching funds essential for the production of its Endurance electric pickup truck.

The Ohio-based company's shares soared more than 14 per cent in extended trading on Wednesday.

The struggling EV maker last year entered the agreement with Foxconn for the sale of its Ohio facility for $230 million, excluding certain assets such as the hub motor assembly and battery pack lines.

On Wednesday, Lordstown said the deal close results in $260 million of proceeds to the company, including the reimbursement of certain operating and expansion costs.

The company said on Monday it needed $150 million in addition to the proceeds from the asset purchase deal to put its Endurance electric pickup truck into production.

Under the agreement, the two companies would create a joint venture to make future vehicles, with Lordstown owning a 45 per cent stake and Foxconn owning the rest.