Lordstown engines
Ohio-based Lordstown Motors is making public an opposite merger with DiamondPeak Holdings in a deal that values the electric vehicle manufacturer $1.6 billion.
The agreement will involve an investment of up to $675 million for Lordstown Motors, which will be used to finance the production of its Endurance electric van.
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Lordstown Motors was originally owned by Workhorse, but was eventually divided into a separate company. Workhorse maintains a 10% stake in Lordstown Motors. Workhorse jumped 11% in pre-market trades on monday after the announcement.
The Lordstown Endurance pickup truck will compete with electric pickups from the Tesla, Nikola Corp., Fisker Inc. and Rivian electric vehicle brands.
Lordstown expects Endurance to enter production by the time of 2021.
DiamondPeak rose 29% to $13.20 on Monday before going on the market following the merger’s announcement. The transaction is expected to close in the fourth quarter.
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