Lordstown Motors Stock Now Trades as RIDEQ, Signaling OTC Market Move

TL;DR

**Lordstown Motors (RIDEQ) is now an OTC stock, signaling major financial distress and high risk.**

AI Summary

Lordstown Motors Corp. filed an 8-K on January 9, 2024, disclosing that its Class A common stock, with a par value of $0.0001 per share, is now trading under the symbol RIDEQ. This change, effective January 4, 2024, indicates the company's shares are likely trading on an over-the-counter (OTC) market, typically a consequence of delisting from a major exchange due to bankruptcy or other financial distress. For investors, this means the stock is now considered highly speculative and illiquid, reflecting the company's ongoing financial challenges and potential for further value erosion.

Why It Matters

This filing confirms Lordstown Motors' stock is trading on an OTC market, which often means lower liquidity and increased risk for investors, reflecting the company's distressed financial state.

Risk Assessment

Risk Level: high — Trading on an OTC market under a 'Q' symbol typically indicates bankruptcy or severe financial distress, making the stock highly speculative and illiquid.

Analyst Insight

A smart investor would view this as a strong signal of financial distress and extreme risk, likely avoiding the stock or considering it only for highly speculative, short-term trading with capital they can afford to lose entirely.

Key Numbers

• $0.0001 — Par Value per Share (The par value of Lordstown Motors' Class A common stock.)

Key Players & Entities

• Lordstown Motors Corp. (company) — the registrant filing the 8-K
• RIDEQ (company) — the new trading symbol for Lordstown Motors' Class A common stock
• $0.0001 (dollar_amount) — par value per share of Class A common stock
• January 4, 2024 (date) — date of the earliest event reported
• January 9, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Lordstown Motors' stock will continue to experience high volatility and low liquidity due to its OTC status. (Lordstown Motors Corp.) — high confidence, target: 2024-12-31
• The company will face significant challenges in raising capital through equity markets given its current trading status. (Lordstown Motors Corp.) — high confidence, target: 2024-12-31

FAQ

Key Financial Figures

• $0.0001 — tered Class A common stock, par value $0.0001 per share RIDEQ * Indicate by che
• $45 million — Bankruptcy Court in the face amount of $45 million on the basis of "monetary remedies for

Filing Documents

• tm242349d1_8k.htm (8-K) — 33KB
• 0001104659-24-002458.txt ( ) — 202KB
• ride-20240104.xsd (EX-101.SCH) — 3KB
• ride-20240104_lab.xml (EX-101.LAB) — 33KB
• ride-20240104_pre.xml (EX-101.PRE) — 22KB
• tm242349d1_8k_htm.xml (XML) — 3KB

01

Item 7.01 Regulation FD Disclosure. As previously disclosed, on June 27, 2023 (the "Petition Date"), Lordstown Motors Corp., a Delaware corporation (the "Company"), and its subsidiaries (collectively, the "Debtors"), commenced voluntary proceedings under chapter 11 ("Chapter 11") of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Chapter 11 proceedings are being jointly administered under the caption In re: Lordstown Motors Corp., et al. , Cases No. 23-10831 through 23-10833 (the "Chapter 11 Cases"). The Company has been seeking to use the tools of Chapter 11 to fully, finally, and efficiently resolve its contingent and other liabilities, to pursue certain litigation before the Bankruptcy Court and to finalize a Joint Plan of Lordstown Motors Corp. and Its Affiliated Debtors to emerge from bankruptcy, which has been filed with the Bankruptcy Court in a proposed form and remains subject to amendment, modification, supplementation, and confirmation by the Bankruptcy Court (the "Proposed Plan"). As previously disclosed, the Company received two subpoenas from the Securities and Exchange Commission ("SEC") for the production of documents and information, including relating to the merger between DiamondPeak and Legacy Lordstown and pre-orders of vehicles. The Debtors have been engaged in settlement discussions with the SEC to resolve potential claims relating to these matters. While these discussions have been ongoing, the deadline for the SEC to file proofs of claim against the Debtors with the Bankruptcy Court was January 5, 2024, which was extended from the general bar date for governmental units to file proofs of claim of December 26, 2023. Prior to such deadline, on January 4, 2024, the SEC filed a proof of claim with the Bankruptcy Court in the face amount of $45 million on the basis of "monetary remedies for violations of federal securities laws," as stated in the proof of claim. The Debtors cont

Forward-looking Statements

Forward-looking Statements This report includes forward looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "feel," "believes," "expects," "estimates," "projects," "intends," "should," "is to be," "may," or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking materially from the forward-looking statements contained herein due to many factors. With respect to the matters addressed in this report, those factors include, but are not limited to the risks and uncertainties regarding the impact of the SEC investigation and asserted claim and any other pending or future litigation or claims asserted with respect to or by the Company and efforts to settle such matters and any terms thereof; possible claims by suppliers for our inability to meet obligations to them; the availability of insurance coverage with respect to litigation or claims, adverse publicity with respect to these matters, as well as the significant ongoing costs associated with such litigation; changes to the terms and conditions of the Proposed Plan before it becomes final; the approvals required from the Bankruptcy Court and stakeholders that will be entitled to vote on the Proposed Plan; our ability to successfully complete the Chapter 11 Cases, including our ability to successfully resolve litigation and other claims that may be filed against us, and to finish developing, negotiating, confirming and consummating the Proposed Plan or any Chapter 11 plan; our ability to obtain timely approval of the Bankruptcy Court with respect to our motions filed in the Chapter 11 Cases; the adverse impact of the Chapter 11 Cases on our bu

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LORDSTOWN MOTORS CORP. By: /s/ Adam Kroll Name: Adam Kroll Date: January 9, 2024 Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR