CINCINNATI, Nov. 7, 2019 /PRNewswire/ -- Workhorse
Group Inc. (NASDAQ: WKHS) ("Workhorse" or
"the Company"), an American technology company focused on
providing sustainable and cost-effective electric-mobility
solutions to the transportation sector, has entered into an
intellectual property licensing agreement ("IPLA") with Lordstown
Motors Corp. ("LMC"), a private corporate entity founded by former
Workhorse CEO Steve Burns.
The LMC entity was created in connection with, and for the
purpose of, acquiring the General Motors ("GM") manufacturing
facility located in Lordstown,
Ohio. LMC intends to manufacture electric trucks in
Lordstown.
Under the terms of the IPLA, Workhorse is granting LMC a
three-year exclusive license of certain intellectual property
relating to the Company's W-15 electric pickup truck in exchange
for an initial equity stake of 10% in LMC, which will be
anti-dilutive for two years. Going forward, Workhorse is entitled
to a license fee equal to 1% of the gross sales price of each LMC
truck sold, up to the first 200,000 units. LMC has agreed to
pre-pay a portion of the license fee in an amount equal to 1% of
the aggregate debt and equity commitments LMC intends to raise.
Once the pre-payment has been amortized over actual production, LMC
will pay on a per unit shipped basis up to the 200,000 unit cap.
Workhorse will receive an additional 4% commission on the gross
sales price of trucks sold which fulfill the 6,000 pre-orders for the W-15
transferred from the Company to LMC.
"This long-term partnership allows Workhorse to benefit by both
monetizing our existing technology and participating in the upside
potential of this new venture without prohibitively diluting our
existing shareholders," said Company CEO Duane Hughes. "Having an affiliated company with
significant automotive production capacity also provides us with
beneficial manufacturing footprint options in the future, should
Workhorse win substantially larger contracts as we scale our
operations. We also appreciate GM's acceptance of our combined
proposal and believe it represents the best opportunity to keep
production in Lordstown. We look
forward to working together in the future as we finalize this
transaction and explore additional production possibilities at the
plant."
Lordstown Motors Corp. CEO Steve
Burns added, "Workhorse is the right technology partner for
LMC, and this agreement ensures that both parties are positioned,
and incentivized, to succeed. Under this structure, both Workhorse
and LMC stand to benefit by blending Workhorse's technology with
the production capacity of Lordstown Assembly. We, along with
Workhorse, remain dedicated to keeping vehicle production in
Lordstown. Now, with LMC's
acquiring of the Lordstown, Ohio
factory, it is time to begin executing on our plan."
For additional details regarding the agreement, please reference
the Form 8-K to be filed with the U.S. Securities and Exchange
Commission on November 7, 2019.
About Workhorse Group Inc.
Workhorse is a technology
company focused on providing electric mobility solutions to the
transportation sector. As an American original equipment
manufacturer, we design and build high performance battery-electric
vehicles including trucks and aircraft. Workhorse also develops
cloud-based, real-time telematics performance monitoring systems
that are fully integrated with our vehicles and enable fleet
operators to optimize energy and route efficiency. All Workhorse
vehicles are designed to make the movement of people and goods more
efficient and less harmful to the environment. For additional
information visit workhorse.com.
About Lordstown Motors Corp.
Lordstown Motors Corp.
(LMC), is an Ohio-based original
equipment manufacturer (OEM) of light duty fleet vehicles. The
company plans to begin building the Endurance™ electric pickup
truck in 2020 in the former GM Lordstown,
Ohio factory, where Lordstown Motors Corp. will also locate
its headquarters. For additional information visit
www.lordstownmotors.com
Forward-Looking Statements
This press
release includes forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by words such as "believes," "expects,"
"anticipates," "estimates," "projects," "intends," "should,"
"seeks," "future," "continue," or the negative of such terms, or
other comparable terminology. Forward-looking statements are
statements that are not historical facts. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from the
forward-looking statements contained herein. Factors that
could cause actual results to differ materially include, but are
not limited to: our limited operations and need to expand in the
near future to fulfill product orders; risks associated with
obtaining orders and executing upon such orders; the ability to
protect our intellectual property; the potential lack of market
acceptance of our products; potential competition; our inability to
retain key members of our management team; our inability to raise
additional capital to fund our operations and business plan; our
inability to satisfy covenants in our financing agreements; our
inability to maintain our listing of our securities on the Nasdaq
Capital Market; our inability to satisfy our customer warranty
claims; our ability to continue as a going concern; our liquidity
and other risks and uncertainties and other factors discussed from
time to time in our filings with the Securities and Exchange
Commission ("SEC"), including our annual report on Form 10-K filed
with the SEC. Workhorse expressly disclaims any obligation to
publicly update any forward-looking statements contained herein,
whether as a result of new information, future events or otherwise,
except as required by law.
Workhorse Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Investor Relations
949-574-3860
WKHS@gatewayir.com
Lordstown Motors Corp. Investor Relations
Contact:
media@lordstownmotors.com
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SOURCE Workhorse Group Inc.