Workhorse, the EV Company Looking to Move Into GM's Shuttered Ohio Plant Gets a $25 Million Cash Infusion
【Summary】Workhorse Group, the electric truckmaker that General Motors confirmed last month it was in negotiations with the company’s founder to purchase its shuttered assembly plant in Lordstown, Ohio has received a much-needed cash infusion.
Workhorse Group, the electric truckmaker that General Motors confirmed it was in negotiations with the company's founder to purchase GM's shuttered assembly plant in Lordstown, Ohio has received a much-needed cash infusion.
The electric vehicle startup said Monday that it had raised $25 million from investors.
Workhorse, which is based in Cincinnati, said the money would come from an unnamed group of institutional investors and was not intended to go toward the purchase of the GM plant.
In a regulatory filing earlier this year, Workhorse said it needed to raise $22 million to continue to make delivery trucks for UPS, DHL and its other customers. Workhorse is working with the logistics companies developing an electric cargo vans for commercial use in urban areas.
Among its offerings, Workhorse is building electric carbon-fiber delivery vans weighing just 5,500 pounds but can carry a one-ton load with a range of up to 100 miles from a 60-kilowatt-hour battery pack. The company is currently testing the electric vans in San Francisco.
"This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog," Duane Hughes, Workhorse's chief executive, said in a statement.
GM said it was having discussions with Workhorse's founder and former chief executive about buying the the automaker's idle plant in Lordstown, Ohio. The plant built the Chevy Cruze sedan, which was discontinued as part of a restructuring move announced in November of last year.
GM said it was moving away from sedans that are becoming less popular with consumers and instead is building more SUVs, crossovers and electric models.
Although the $25 million in new funding is significant its still not enough for Workhorse. Steve Burns, Workhorse's former chief executive, has said he needs to raise about $300 million to acquire and restart the Lordstown plant.
President Trump, who openly criticized GM for closing the Lordstown facility, disclosed the potential sale to Workhorse hours before GM officially announced it in early May, putting the little known company in the national spotlight.
According to the New York Times, Workhorse intends to take a minority stake in the unnamed company that Steve Burns, the company's former chief executive, said he formed to buy the factory.
In return for providing Workhorse with cash, investors are getting preferred stock and warrants to purchase shares. The preferred stock comes with an annual dividend that is paid out in shares of Workhorse stock.
The warrants have an exercise price of $1.62 a share and can be immediately exercised by the investors, according to a regulatory filing.
Shares of Workhorse closed at $2.85 on Monday, up 25 percent.
Qualcomm to Supply General Motors With Chips for Next-Gen Digital Cockpits and Advanced Driver Assist Systems
Tesla Rival Xpeng Sets Up Auto Parts Manufacturing Company That Will Include EV Battery Production
Toyota-backed Startup Joby Aviation is Seeking to Go Public in a $5 Billion SPAC Deal
Automaker Kia is Said to Be Reviewing Plans to Build EVs with Multiple Firms, Hinting at Ongoing Talks with Tech Giant Apple
Audi to Build Electric Vehicles in China in a New Joint Venture with Automaker FAW Group
BMW’s ‘Digital Key Plus’ With Ultra-Wideband Technology is Coming to the Electric iX SUV
Chinese EV Startup Xpeng Secures $2 Billion Credit Line to Expand its Operations as it Takes on Tesla
Mercedes Benz Unveils its 56-inch AI-Powered ‘Hyperscreen’ Dashboard Display
- UK Moving up Its Goal to Ban New Gas-Powered Car Sales to 2030
- BMW’s ‘Digital Key Plus’ With Ultra-Wideband Technology is Coming to the Electric iX SUV
- Tesla Vehicle Registrations Rise 63% in California in the Final Quarter of 2020 on Brisk Sales of the Model Y
- Waymo Releases Report on How it Ensures its Autonomous Vehicles Offer the Highest Level of Safety
- China’s Baidu Fully Opens its 'Apollo Go' Robotaxi Service to the Public in Beijing
- Velodyne Unveils a New Solid State Lidar Sensor for Driver Assistance Systems & Autonomous Driving
- Nissan Joins General Motors in Backing California’s Stricter Emission Rules for Motor Vehicles
- The Tesla Model 3 Will Now Share More Components with the Model Y Crossover
- Daimler’s U.S. Truck Unit Fined $30 Million by the NHTSA for Delaying Recalls
- Apple iPhone Assembler Foxconn Wants to Supply the Components for 10% of the World’s EVs