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UPDATE | Lordstown Motors trying to raise $43M by issuing new shares

Lordstown Motors is trying to raise new capital to make it to 2022, after a recent notice that it might not survive.
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[Editor's note: This story was corrected to reflect that the RIDE stock warrants that may be exercised come from existing stock and are not dilutive.]

LORDSTOWNLordstown Motors could raise up to $43 million for operations if its nearly 4 million outstanding warrants are exercised.

The company amended its U.S. Securities and Exchange Commssion registration on Thursday which included that detail. Shares of Lordstown Motors (NASDAQ: RIDE) earned a 0.8-point boost by close of trading Friday, but in the long-term view, remained mostly unaffected.

The stock is still down more than 4 points since the company disclosed to regulators a "going concern" notice earlier this week, alerting that the company is struggling financially and that investors are at risk.

Though the electric vehicle startup has budgeted for a limited first run of its all-electric pickup truck, the Endurance, it warned it wouldn't reach commercial production in 2022 without new financing.

The company had more than 176 million shares of Class A common stock outstanding at the end of March and nearly 4 million warrants that could be exchanged for cash. Warrants give investors the option to later buy into the company at a certain price.

The $43 million that could be raised — assuming all those warrants are exercised for cash — would be put toward "general corporate purposes," according to the filing.

The more than 2.3 million private warrants first issued when the company merged with DiamondPeak Holdings in October.

Another 1.6 million in warrants were also issued after that merger to Brown Gibbons & Lang Company — the Cleveland investment firm of Lordstown Motors financier and Republican U.S. Senate hopeful Mike Gibbons.

Justin Dennis

About the Author: Justin Dennis

Justin Dennis has been on the beat since 2011, covering crime, courts and public education. Dennis grew up in Poland and Salem and studied journalism and communications at Cleveland State University and University of Pittsburgh.
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