UPDATE 1-Lordstown Motors closes deal to sell assets to Foxconn, shares surge
(Adds details on deal, shares)
May 11 (Reuters) - Lordstown Motors Corp said it has completed a deal to sell certain assets to Taiwanese contract manufacturer Foxconn, clinching funds essential for the production of its Endurance electric pickup truck.
The Ohio-based company's shares soared more than 14% in extended trading on Wednesday.
The struggling EV maker last year entered the agreement with Foxconn for the sale of its Ohio facility for $230 million, excluding certain assets such as the hub motor assembly and battery pack lines.
On Wednesday, Lordstown said the deal close results in $260 million of proceeds to the company, including the reimbursement of certain operating and expansion costs.
The company said on Monday it needed $150 million in addition to the proceeds from the asset purchase deal to put its Endurance electric pickup truck into production.
Under the agreement, the two companies would create a joint venture to make future vehicles, with Lordstown owning a 45% stake and Foxconn owning the rest.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)