CLEVELAND, Ohio – The former CEO of Lordstown Motors Corp. has bought the company’s assets for 10 million dollars, according to documents filed with the US Securities and Exchange Commission.
Stephen S. Burns, who was also a member of the board of directors, resigned in June 2021. He is the largest shareholder of LAS Capital LLC. Julio Rodriguez, former chief financial officer of Lordstown Motors Corp., is one of the “indirect managers of LAS Capital,” the documents say.
“LAS Capital has agreed to acquire the special assets of the sales organizations related to the design, manufacture and sale of electric light duty vehicles focusing on the commercial fleet market free of charges, claims, encumbrances, and other interests, and to take on certain specific debts of the organizations that sells,” the documents say.
The offer includes all machinery, including hub assembly lines, battery module assembly lines, battery pack assembly lines and associated or related machinery and the entire inventory, among other products.
The deal has corporate termination rights with LAS Capital, including the right to terminate the deal if it doesn’t close by October 31.
A spokeswoman for Lordstown said in an email to cleveland.com and The Plain Dealer that the company has no additional comment beyond the documents that were submitted.
Lordstown has had a troubled history since it bought the former GM plant in 2019 and promised to bring jobs back to Northeast Ohio. While the company was praised as a manufacturing success by Republicans, including President Donald Trump, in four years, the company produced less than 100 of its flagship electric vehicles – the Endurance electric pickup truck.
In June the company filed for Chapter 11 bankruptcy protection on Tuesday and took legal action against Foxconn, the global electronics maker that was supposed to be its savior.
Burns and Rodriguez’s departure from Lordstown was announced the same day the company responded to a scathing March 2021 report from Hindenburg Research that “questioned the number of pre-orders the company claimed to have received for its Endurance luxury vehicle,” according to Cleveland. com story.
Lordstown Motors warned the same month that it could go out of business within a year. The company said it did not have enough money to begin mass production of the Endurance truck.