Lordstown Motors Corp HORSE RIDING said that on Monday Hon Hai Precision Industry Co.,Ltd HNHPF affiliate Foxconn Ventures Pte. GmbH has agreed to make an additional equity investment of $170 million in the Electric Vehicle Company.

What happened: The investment will be in the form of $70 million in Lordstown common stock and up to $100 million in newly created Series A convertible preferred stock.

“Foxconn is expected to hold all of LMC’s outstanding preferred stock and 18.3% of its common stock on a pro forma basis and will have the right to appoint two directors to LMC’s board of directors,” Lordstown said in a statement.

Foxconn, a key apple inc AAPL Suppliers, is expected to complete initial closing on or about November 22nd.

See also: How to Buy Electric Vehicle (EV) Stocks.

Why it matters: Lordstown said it will use the proceeds from the sale of preferred stock to “fund development and design activities for a “new electric vehicle program in partnership with Foxconn.”

The $100 million direct investment in preferred stock replaces the joint venture financing previously announced by the two companies.

The latest announcement comes after the ailing automaker said in May it had closed a $230 million deal to sell its Ohio factory to Foxconn.

Price promotion: On Monday, Lordstown shares surged 19.5% to $2.21 in extended trading after closing 4.15% lower at $1.85 in the regular session Benzinga Pro data.

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Photo courtesy Lordstown Motors