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Lordstown opts for reverse stock split to meet Nasdaq rules, appease Foxconn


(Reuters) -Lordstown Motors Corp said on Tuesday it will carry out a reverse stock split to meet the Nasdaq listing norms and to appease investor Foxconn, which had threatened to scrap a crucial $170 million funding.

The 1:15 split will happen on May 24, the electric vehicle startup said, but added there was no assurance that the Foxconn deal will close.

Lordstown Motors shares fell 10% in premarket trading to $0.26, slipping further below the $1 minimum requirement of the Nasdaq.

The company had earlier this month warned it might be forced to file for bankruptcy due to uncertainty over the investment from Foxconn.

(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)

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