{"id":116392,"date":"2021-06-14T12:24:26","date_gmt":"2021-06-14T12:24:26","guid":{"rendered":"https:\/\/fin2me.com\/?p=116392"},"modified":"2021-06-14T12:24:26","modified_gmt":"2021-06-14T12:24:26","slug":"electric-truck-maker-lordstown-motors-says-ceo-cfo-resign","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/electric-truck-maker-lordstown-motors-says-ceo-cfo-resign\/","title":{"rendered":"Electric-truck maker Lordstown Motors says CEO, CFO resign"},"content":{"rendered":"
(Reuters) -Lordstown Motors Corp said on Monday Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez have resigned, days after the electric-truck maker warned that it may not have enough cash to stay in business over the next year.<\/p> The company added that its lead independent director, Angela Strand, has been appointed executive chairwoman and would oversee the firm\u2019s transition until a permanent CEO is identified.<\/p>\n Lordstown named Becky Roof, who had previously served as interim CFO at numerous companies including Eastman Kodak and Hudson\u2019s Bay Co, was named interim finance chief of Lordstown effective immediately.<\/p>\n Since the going-concern warning last week, the company has allayed some worries by saying it was in talks with multiple parties to raise funds.<\/p>\n Shares of the company fell about 9% to $10.40 in premarket trading after the announcement.<\/p>\n The drop was the latest sign of a recent retreat in the once high flying electric vehicle sector, whose ranks have been swollen by the recent boom in special purpose acquisition companies, or SPACS.<\/p>\n Lordstown and Nikola , which both went public via acquisitions by SPACS – shell companies that use their IPO proceeds to acquire private firms – have lost ground this year.<\/p>\n In March, Lordstown\u2019s shares slumped after short seller Hindenburg Research disclosed it had taken a short position on the stock, saying the company had misled consumers and investors.<\/p>\n Short sellers bet the price of a stock will fall by borrowing and selling shares in the hope of buying them back at a cheaper price and pocketing the difference.<\/p>\n In a separate statement on Monday, the company\u2019s Special Committee investigation concluded that the Hindenburg report was, in significant respects, false and misleading.<\/p>\n Hindenburg Research did not immediately respond to a Reuters request for comment.<\/p>\n