- WORKHORSE NEWS USPS CONTRACT UPDATE
- WORKHORSE NEWS USPS CONTRACT TRIAL
- WORKHORSE NEWS USPS CONTRACT LICENSE
Photo: LMC CEO Steve Burns showing an Endurance prototype to President Trump at the White House on September 28 - Source: Fox Business
In addition, the company has been allocated a 10% stake in LMC which will be dilution-protected for two years. Workhorse will also receive a $4.8 million upfront royalty payment upon closing of the LMC reverse merger transaction.
WORKHORSE NEWS USPS CONTRACT LICENSE
1% gross sales price license fee for the first 200,000 units: $105 million.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.Īt a stated price tag of $52,500 for the Endurance pickup truck, the potential proceeds to the company over time calculate as follows: 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. 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. 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. 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. The move paves the way for LMC to begin production of the Endurance™ pickup truck, the industry's first all-electric pickup truck purpose-built for fleets starting in late 2020.Ĭoncurrently, Workhorse entered into an intellectual property licensing agreement with LMC:
In late 2019, LMC acquired General Motors' (NYSE: GM) former Lordstown, Ohio plant for the purpose of manufacturing electric vehicles: Once consummated, shares are expected to trade on Nasdaq under the ticker "RIDE." Remember that Workhorse is affiliated with Lordstown Motors Corporation ("LMC"), a private company founded by former Workhorse CEO Steve Burns which is about to go public via a reverse merger transaction with blank check company DiamondPeak Holdings Corporation (DPHC).
WORKHORSE NEWS USPS CONTRACT TRIAL
Photo: Workhorse / VT Hackney USPS Trial Prototype - Source: We always viewed political optics of an award before the election as essential, and now see increased risk for an award." A USPS PR spokesperson indicated it now expects a decision by the end of 2020. We noted then the decision day was slated for today, October 13th. "We received an email communication from the USPS after heavy press coverage of our call indicating confidence in Workhorse's bid for the $8.1bn and 165,000 unit NGDV contract. On Tuesday, shares of electric vehicle developer and producer Workhorse Group ("Workhorse") sold off after Roth Capital analyst Craig Irwin downgraded the stock from " buy" to " neutral" and cut its price target from $33 to $27 as the eagerly-awaited decision on a massive $8.1 billion United States Postal Service ("USPS") next generation delivery vehicle contract award has apparently been delayed beyond the November 3 US Presidential Election date:
WORKHORSE NEWS USPS CONTRACT UPDATE
Note: I have covered Workhorse Group ( NASDAQ: WKHS) previously, so investors should view this as an update to my earlier articles on the company.
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