Lordstown Motors Sells Assets to PGT, Inc. for $10M

TL;DR

Lordstown Motors selling its assets to PGT for $10M, ending the Endurance truck program.

AI Summary

Lordstown Motors Corp. announced on February 29, 2024, that it has entered into a definitive agreement to sell substantially all of its assets to a subsidiary of PGT, Inc. for approximately $10 million in cash. This transaction is expected to close in the first quarter of 2024 and will result in Lordstown Motors ceasing its Endurance full-size pickup truck program.

Why It Matters

This asset sale marks a significant pivot for Lordstown Motors, signaling the end of its Endurance truck program and a substantial reduction in its operational scope.

Risk Assessment

Risk Level: high — The company is selling off its core assets and ceasing its primary product program, indicating severe financial distress and uncertainty about its future operations.

Key Numbers

• $10.0M — Asset Sale Price (Cash consideration received by Lordstown Motors from PGT, Inc.)

Key Players & Entities

• Lordstown Motors Corp. (company) — Filer and seller of assets
• PGT, Inc. (company) — Buyer of assets
• $10 million (dollar_amount) — Cash purchase price for assets
• February 29, 2024 (date) — Date of definitive agreement
• Endurance (product) — Lordstown Motors' full-size pickup truck program being discontinued

FAQ

Key Financial Figures

• $0.0001 — tered Class A common stock, par value $0.0001 per share RIDEQ * Indicate by che
• $45 million — ed against the Debtors in the amount of $45 million (the "SEC Claim") on January 4, 2024. O
• $25.5 m — le to pay disgorgement in the amount of $25.5 million, which amount shall be deemed ful
• $3.0 m — es for the Company to fund no less than $3.0 million, and up to $10.0 million, to reso
• $10.0 m — nd no less than $3.0 million, and up to $10.0 million, to resolve claims asserted or th
• $15.5 million — oviding for the payment of no less than $15.5 million to resolve claims asserted or that coul
• $3 million — he Proposed Plan, the Company would pay $3 million into escrow on the effective date of th
• $7 million — f (a) 25% of such net proceeds, and (b) $7 million. With respect to the Delaware Class Act
• $3.5 million — cation from the Company with respect to $3.5 million of the settlement amount plus legal fee

Filing Documents

• tm247705d1_8k.htm (8-K) — 45KB
• 0001104659-24-029680.txt ( ) — 218KB
• ride-20240229.xsd (EX-101.SCH) — 3KB
• ride-20240229_lab.xml (EX-101.LAB) — 33KB
• ride-20240229_pre.xml (EX-101.PRE) — 22KB
• tm247705d1_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"). As also previously disclosed, the Joint Chapter 11 Plan of Lordstown Motors Corp. and Its Affiliated Debtors and accompanying Disclosure Statement Pursuant to 11 U.S.C. 1125 with Respect to Joint Chapter 11 Plan of Lordstown Motors Corp. and Its Affiliated Debtors, originally filed on September 1, 2023 and as amended through February 29, 2024 (and as may be further modified, supplemented, or amended, the "Proposed Plan") includes as a condition to confirmation of the Proposed Plan, that the Securities and Exchange Commission ("SEC") approve an offer of settlement (the "Offer") submitted by the Debtors to resolve claims relating to prior legacy issues at the Company, including the proof of claim that the SEC filed against the Debtors in the amount of $45 million (the "SEC Claim") on January 4, 2024. On February 29, 2024, the SEC approved and authorized the entry of an administrative order with respect to the Company (the "Order"), to which the Company consented without admitting or denying the Order's assertions of factual findings. The Order directs the Company to cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, Sections 13(a) and 14(a) of the Securities Exchange Act of 1934, and Rules 12b-20, 13a-11, 13a-11, 14a-3 and 14a-9 thereunder. The Order also provides that the Company will be liable to pay dis

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: March 1, 2024 Title: Chief Financial Officer

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View this 8-K filing on SEC EDGAR