Acquirer: Foxconn Ventures Pte. Ltd. (Singapore); Hon Hai Technology Group (Taiwan)
Acquired: Lordstown Motors Corp. (United States)
Value: $52.7 Million (Initial Closing) and approximately $47.3 Million (Second Closing)
Industry Tags: Electric Vehicles
On November 7, 2022, Foxconn Ventures Pte. Ltd, a Singapore affiliate of publicly traded Taiwan technology company Hon Hai Technology Group (TWSE: 2317), entered into an Investment Agreement with Lordstown Motors Corp. (Nasdaq: RIDE), an original equipment manufacturer of electric vehicles. (Lordstown Motors Corp. Form 8-K, Item 1.01, Nov. 7, 2022, SEC Filing) (Press Release, Lordstown Motors Corp. Form 8-K, Ex-99.1, Nov. 7, 2022, SEC Filing). Following an initial investment, the Investment Agreement contemplated a “Subsequent Common Closing” that was conditioned on “CFIUS Clearance.” (See Investment Agreement, § 6.04, Lordstown Motors Corp. Form 8-K, Ex10.1, Nov. 7, 2022, SEC Filing.) On November 22, 2022, Lordstown Motors “completed the initial closing under the Investment Agreement, at which Foxconn purchased for an aggregate investment of approximately $52.7 million (a) 12,917,274 shares of Class A common stock . . . and (b) 300,000 shares of Series A Convertible Preferred Stock . . .” (Lordstown Motors Corp. Form 8-K, Nov. 22, 2022, SEC Filing.) “Foxconn will have the right to appoint two designees to LMC’s Board of Directors after receiving CFIUS clearance and consummation of the Subsequent Common Closing.” (Press Release, Lordstown Motors Corp. Form 8-K, Ex-99.1, Nov. 7, 2022, SEC Filing.) “CFIUS Clearance was received on April 25, 2023 . . .” (Lordstown Motors Corp. Form 8-K, May 1, 2023, SEC Filing.)
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