Ex-CEO gets $18M from LMC stock
LORDSTOWN — The founder and ex-CEO of Lordstown Motors Corp. has sold more than 3.2 million shares of the stock he owns in the startup electric-vehicle maker, earning more than $18.8 million in the transaction.
A filing Tuesday with the U.S. Securities and Exchange Commission shows after the sale — 3,204,000 shares at a per share price of $5.88 — Steve Burns still owns more than 29.2 million direct shares and 13.9 million indirect shares of the company’s Class A common stock.
Burns remains the largest shareholder of the company he created in 2019 to mass produce electric vehicles, but abruptly resigned from in June. The company has not given a reason for Burns’ departure and the resignation of former Chief Financial Officer Julio Rodriguez at the same time, but the moves came in tune with an admission by the company that statements regarding preorders for its flagship vehicle, the Endurance truck, were inaccurate.
Burns’ transaction was Friday.
According to an SEC filing in June, Burns’ separation agreement called for him to receive his base $750,000 salary over 18 months. Rodriguez was given his base $200,000 salary over six months.
Burns was permanently replaced by chief executive Dan Ninivaggi, who with other recently appointed executives, are trying to reverse the fortune of the company that’s been through its share of controversy this year.
Lordstown Motors recently announced a formal asset-purchase agreement with Taiwanese tech giant Foxconn to buy the plant and the appointment of a new president, done with narrow focus to bring the Endurance to market.
Still, the company announced last week during its third quarter 2021 financial report it will delay commercial production and customer delivery of the Endurance until the third quarter of 2022 due to obstacles that pushed back assembly of preproduction vehicles needed for validation and whole-vehicle approval.
The previous market delivery target date, the company said in August, was for the second quarter of next year.
The company expects to build about 100 preproduction Endurances over the next three months, a delay brought on because of parts shortages and other supply-chain disruptions.
Lordstown Motors stock closed trading Tuesday down 6.1 percent at $5.49 per share.