© Reuters. FILE PHOTO: Lordstown’s logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) -Lordstown Motors Corp said it has completed a deal to sell certain assets to Taiwanese contract manufacturer Foxconn, clinching funds essential for the production of its Endurance electric pickup truck.
The Ohio-based company’s shares soared more than 14% in extended trading on Wednesday.
The struggling EV maker last year entered the agreement with Foxconn for the sale of its Ohio facility for $230 million, excluding certain assets such as the hub motor assembly and battery pack lines.
On Wednesday, Lordstown said it will get $260 million of proceeds, including the reimbursement of certain operating and expansion costs.
The company said on Monday it needed $150 million in addition to the proceeds from the asset purchase deal to put its Endurance electric pickup truck into production.
Under the agreement, the two companies would create a joint venture to make future vehicles, with Lordstown owning a 45% stake and Foxconn owning the rest.
Lordstown President Edward Hightower told Reuters Wednesday that with the sale of the Ohio factory to Foxconn and the establishment of a product development joint venture with Foxconn, Lordstown can raise additional cash after it delivers the first Endurance trucks to customers.
The product development venture with Foxconn will allow Lordstown and Foxconn together to offer vehicle development and a U.S. manufacturing base to international automakers that need both, Hightower said.