June 27, 2021一After months of bad press and federal investigation, Lordstown Motors has found a buyer willing to purchase $400 million of the company’s shares, Reuters reported.
Hedge fund YA II PN Ltd has committed to purchasing the shares over a three-year period, coming at a crucial time for the EV truck maker, the report said.
"I was surprised," Erik Gordon, professor at the University of Michigan's Ross School of Business, told Reuters. "It's more like the knight in shining armor than the vulture at the carcass."
The agreement comes a month after Lordstown warned it may not be able to continue as a "going concern."
Gordon said the commitment creates a cushion of liquidity that could help the Ohio startup attract funding from others.
