Staff report

LORDSTOWN — A new company has emerged from the bankruptcy of failed electric-vehicle manufacturer Lordstown Motors Corp.

Shares of Nu Ride Inc., the former Lordstown Motors, continue to trade on the OTC Pink Market, but under a new ticker symbol — NRDE — and the company has relocated its headquarters from Lordstown to New York City, according to a recent regulatory filing.

OTC, or over-the-counter trading, is a trading platform for stocks not listed on a major exchange.

Shares closed trading Monday at $2.20 per share, up about 9.5%.

The company emerged from bankruptcy Thursday, nine days after a federal bankruptcy court judge in Delaware approved Lordstown Motors’ exit plan, the filing with the U.S. Securities and Exchange Commission states. According to Nu Ride’s website, it emerged from bankruptcy with approximately $78 million and $1 billion of net operating loss carry forwards and various causes of action.

The company intends to deploy its cash and intangible assets to “investigate and prosecute its causes of action” and “identify, evaluate and pursue one or more potential business combinations or acquisitions,” the website states.

Under the exit plan, the employment of Executive Chairman Daniel Ninivaggi, CEO and President Edward Hightower and Executive Vice President and Chief Financial Officer Adam Kroll was terminated with severance agreements.

Ninivaggi’s severance was $550,000; Hightower, $975,267; and Kroll, $685,000, the filing states.

The filing also states William Gallagher was appointed new chief executive, president, secretary and treasurer of the company.

Gallagher, 65, since October 2018, has served as a managing director of M3 Partners and has more than 35 years of experience in finance, investment and financial restructurings. Prior to joining M3, Gallagher was CEO at WMIH Corp, a public acquisition corporation which was the successor to Washington Mutual Inc., from May 2015 to July 2018.

The company’s new board of directors will set Gallagher’s compensation, according to another SEC filing.

The new board consists of Alexander C. Matina, Andrew L. Sole, Michael J. Wartell, Neil Werner and Alexandre Zyngier. No longer with the company are former board members Ninivaggi, Joseph B. Anderson Jr., Keith Feldman, David T. Hamamoto, Hightower, Jane Reiss, Laura J. Soave, Dale Spencer and Angela Strand.

Lordstown Motors filed for bankruptcy in June. The company acquired the former General Motors small-car plant in Lordstown to mass produce electric vehicles, but the company ended up selling the facility to Taiwanese tech giant Foxconn, which agreed as part of the sale to be manufacturer of Lordstown Motors’ first and only vehicle, the Endurance truck.

The relationship soured and Lordstown Motors sued Foxconn the same day it filed bankruptcy, claiming fraud and bad faith on Foxconn’s part led to the bankruptcy. Foxconn denies the claims. The case remains pending.

In October, a company formed by Lordstown Motors’ founder and ex-CEO, Steve Burns, acquired certain assets from Lordstown Motors “related to the design, production and sale of electric light-duty vehicles focused on the commercial fleet market” for $10.2 million.

Earlier this month, Lordstown Motors agreed to pay $25.5 million to settle claims made by the commission that the company exaggerated and misled investors about the demand for the Endurance.

The payment was to resolve certain pending class action lawsuits against the company in Ohio and Delaware.

On Friday, the commission filed notice with the bankruptcy court that it withdrew its $45 million claim against Lordstown Motors, citing the agreement with the company.

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