LORDSTOWN, Ohio (WYTV) – Lordstown Motors made another huge announcement early Monday morning — it will be going public on the NASDAQ stock exchange. This will be possible through merging with another company that’s already gone public.
Lordstown Motors will merge with DiamondPeak Holdings Corporation, a company that merges with other companies to go public.
Both companies held an investor call Monday morning.
“Since taking DiamondPeak public in 2019, we have evaluated hundreds of companies for the optimal target,” said David Hamamoto, with DiamondPeak.
It chose Lordstown Motors because DiamondPeak was impressed with the company’s new, all-electric pickup truck, the Endurance.
“We do not expect we will need any additional equity capital requirements to achieve cash flow,” said Steve Burns, Lordstown Motors CEO.
Hamamoto said they looked at several companies over the past year and Lordstown Motors stood out.
“Lordstown stood out as a differentiated, high growth company at the confluence of electric vehicles and light-duty trucks, two highly valuable areas of focus and tremendous opportunity in the automotive sector. Lordstown’s top-tier management team, led by Steve Burns, has captured a clear lane of customers in the fleet market.”
Since the unveiling of the Endurance just over a month ago, Lordstown Motors has secured $1.4 billion in preorders, Burns said.
Lordstown Motors is hoping to at least break even by 2022.
The transaction also includes $500 million from private investors in public equity, including $75 million from General Motors.
“As well as several long-term institutional investors including Fidelity, Blackrock and Federated,” Hamamoto said.
Valley Congressman Tim Ryan called this a home run for the area.
“We knew something was in the works,” he said. “We weren’t exactly sure what it was but this is some of the best news I think we’ve heard, received in the Mahoning Valley in a long, long time.”
The transaction is expected to be completed sometime in the last three months of this year.
The new ticker symbol will be “RIDE.”