![]() That said, the USPS is reportedly now considering splitting assembly of the 186,000 next-generation daily mail trucks between several of the five teams competing for the contract which would be a somewhat surprising move given steep differences between the offerings: Photo: Workhorse / VT Hackney USPS Trial Prototype Postal Service ("USPS") contract has recently been delayed into next year. Unfortunately, the company has made no visible progress towards executing on its stated $70 million backlog of electric delivery vans for package delivery giants United Parcel Service ( UPS) and DHL ( OTCPK:DPSGY) while the eagerly awaited award of a $6.3 billion U.S. Picture: Rendering of the Endurance Pickup Truck - Source: Company Website In addition, Workhorse has been allocated a 10% stake in LMC which will be dilution-protected for two years. The pre-payment of " 1% of the aggregate debt and equity commitments LMC intends to raise" would amount to $3 million based on the estimated $300 million required to purchase and retool the 6.2-million square-foot Lordstown facility. 4% commission on conversion of up to 6,000 W-15 pre-orders: $12.6 million.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. Three weeks ago, Workhorse entered into an intellectual property licensing agreement with LMC: 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. LMC recently acquired General Motors' (NYSE: GM) former Lordstown, Ohio plant for the purpose of manufacturing electric vehicles: ![]() Since then, the stock has rallied several hundred percent on investor excitement about the company's involvement with Lordstown Motors Corporation ("LMC"), a private company founded by former Workhorse CEO Steve Burns. Suffice to say, I was dead wrong on the direction of foundering electric vehicle developer and producer Workhorse Group's share price at the time of my last article on the company eight months ago. Note: I have covered Workhorse Group ( NASDAQ: WKHS) previously, so investors should view this as an update to my earlier article on the company. ![]()
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