LORDSTOWN, Ohio (WKBN/AP) – There was some good news for Lordstown Motors Monday, where a partnership with an investment group could lead to millions of dollars in stocks.
Yorkville Advisors has partnered with Lordstown motors to invest in $400 million worth of their stock, which company officials say has come at a critical time.
“The higher level of investment will help us continue to meet our production timelines, will continue to invest in the capacity and the technologies we need to do to bring the Endurance to market,” said Carter Driscoll, vice president of corporate development, capital markets and investor relations.
It remains to be seen if this teamwork will allow Lordstown Motors to begin production before the end of the year, which is the company’s goal.
LMC is under new leadership, and it has only been a month since they started.
Driscoll says the team assembled now is broader and deeper and they will drive the company forward.
“The new team has brought into sharing across divisions and functionalities more readily. I think, maybe in the past, we were a little bit in silos, and I think there’s more cross-functional discussion. There’s more teamwork,” Driscoll said.
Not only is this good for the company but it’s good for the village as well.
Mayor Arno Hill says with more employees in the area, they can help with income tax and capital improvements, like getting roads paved and maintaining the services in the village.
“We still have faith in Lordstown Motors. We’re hoping for the best, and hopefully this will get them over the hump so they can start moving into production,” Hill said.
Driscoll says this investment is a good first step toward getting the company back on track.
Shares of the company went up 5% in trading Monday after a steady fall the past month.
Lordstown’s operations have been under increasing scrutiny in recent months after the company said it had no firm orders for its vehicles.
The company’s CEO and chief financial officer then resigned.