By Dave Sebastian

Lordstown Motors Corp. shares rose more than 10% to $6.16 Thursday after the company agreed to sell its Ohio auto factory to contract electronic manufacturer Foxconn for $230 million.

As part of the agreement, Foxconn will make a down payment of $100 million by Nov. 18, as well as subsequent down payments on Feb. 1 and no later than April 15, with the remaining balance paid at closing, the companies said Wednesday.

Upon closing, Foxconn will get 1.7 million warrants to buy Lordstown stock exercisable for three years at $10.50 a share, the companies said.

The companies said they will pursue a joint-venture agreement to design and develop vehicle programs for the commercial fleet market.

Lordstown Motors earlier this year warned that it was burning through cash faster than anticipated and lacked the funds to scale up commercial production. It has since been trying to raise capital.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

November 11, 2021 11:05 ET (16:05 GMT)

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