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.