Lordstown Motors to become publicly traded company after merger
WASHINGTON, D.C. – The electric vehicle manufacturer that took over General Motors’ former Lordstown plant has merged with a Delaware-based holding company in a deal that will raise approximately $675 million to produce the combined company’s new Endurance pickup truck.
The deal between Lordstown Motors Corp. and DiamondPeak Holdings Corp. includes a $75 million investment from General Motors. It will result in the combined company being listed on the NASDAQ under a new ticker symbol: RIDE. Lordstown Motors says it has received advance orders for fleet purchases of the vehicle, and plans to build 20,000 during its first production year.
“We’ve completely reinvented the pickup truck,” said a statement from Lordstown Motors CEO and Founder Steve Burns, who boasts the new vehicle will get the equivalent of 75 miles per gallon. “We’re very excited. The financing that comes from being publicly listed is the last piece we needed as we march towards production in 2021… This is a hard working truck for hard working people.”
The fate of the GM plant, which closed after President Donald Trump assured the Mahoning Valley that jobs would return to the region on his watch and they shouldn’t sell their houses, has been politically fraught, with politicians ranging from Vice President Mike Pence to Vermont Sen. Bernie Sanders visiting it to make political points. The area could break for either candidate in this fall’s presidential election, and both sides have championed the new plant.
A Monday statement from Niles-area Democratic Rep. Tim Ryan, who briefly ran for president last year, congratulated the company “on this achievement and their continued investment in our community.”
“Between the Lordstown Endurance, which when it rolls out in 2021 will be the first full-sized electric pickup truck on the road, the GM-LG Chem electric battery plant being built in Lordstown, and the amazing work being done at BRITE Energy Innovators, America Makes, and the Youngstown Business Incubator — our community is leading the jobs of the future,” Ryan proclaimed.
A press release said the deal between Lordstown Motors and DiamondPeak Holdings is expected to close in the fourth quarter of 2020 and the board of directors for the combined company will include Burns and David Hamamoto, Chairman and CEO of DiamondPeak. Share’s of DiamondPeak’s stock were up roughly 14 percent by Monday afternoon.