LMC is a mirage that paid outside consultants to pad the order numbers to increase investor confidence.
Founder Steve Burns used unethical and deceptive business practices and untested components to make the electric commercial pickup truck called Endurance.
And the report raises questions about how much technology the company has, just as Hindenburg did at Nikola. It cites specifics of a lawsuit alleging LMC stole at least some intellectual property and poached employees from another startup electric vehicle (EV) maker.
‘Half-truths and lies
Burns told The Wall Street Journal the Hindenburg report contained half-truths and lies. He said Hindenburg is trying to hurt the stock before the company reports its first quarterly update as a publicly traded entity next week. Burns did not return a call from FreightWaves.
Churchill Capital Corp IV (NYSE:CCIV), General Motors Company (NYSE:GM) - Short Sellers Are Increasingly Targeting SPACs: WSJ
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Lordstown Motors accused of faking EV truck pre-orders by short-seller firm Hindenburg Research
Hindenburg Research, the short-seller firm whose report on Nikola Motor led to an SEC investigation and the resignation of its founder, is targeting another electric vehicle company. This time it’s Lordstown Motors, the Ohio electric automaker that went public after merging with special-purpose acquisition company DiamondPeak Holdings Corp., with a market value of $1.6 billion.
Hindenburg said in a report Friday that it has taken a short position on Lordstown Motors, causing shares to plummet 21%. Shares have recovered slightly and are now down about 15% from the previous day’s trade. Hindenburg’s short position is based on a company that it says has “no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.”
Provided by Dow Jones By Kimberly Chin DiamondHead Holdings Corp., a blank-check company, filed for an initial public offering with the U.S. Securities and Exchange Commission on Friday. Also known as a special-purpose acquisition company, DiamondHead plans to offer 30 million units at $10 per unit. Each unit will consist of a share of common stock and one-fourth of a redeemable warrant. Each warrant enables the holder to buy a share for $11.50 apiece. Underwriters will also be given a 45-day option to buy up to 4.5 million additional units to cover any over-allotments, the company said. DiamondHead s sponsor DHP SPAC-II Sponsor LLC and certain institutional investors, including funds and accounts managed by subsidiaries of BlackRock Inc. and Millennium Management LLC, have committed to purchase an aggregate of 5.3 million warrants at $1.50 per warrant in a private placement.
rselak@tribtoday.com
LORDSTOWN The auto startup rehabbing the former General Motors assembly plant to mass produce electric pickup trucks made big news in 2020.
As Lordstown Motors Corp. barrels toward the 2021 production launch of its Endurance, it made tremendous strides last year toward that end, perhaps most notably, the public reveal of the truck in June at its Lordstown facility.
The company has pushed through struggles with the viral pandemic, which ultimately caused a production delay, but the pandemic didn’t seem to impact its merger in October with New York-based DiamondPeak Holdings Corp. that turned the private company public.
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