Written by Cláudio Afonso | LinkedIn | X
Nikola filed a prospectus on Monday announcing plans for the potential resale of up to 34.1 million shares by selling stockholders. Additionally, the company said it had entered an equity distribution agreement with BTIG allowing it to sell up to $100 million worth of common stock in an at-the-market offering.
As of the end of the third quarter, Nikola had $198,301 of cash and cash equivalents. The electric truck maker’s shares hit a record low of $1.60 on Friday and are down an additional 2.5% following the announcement.
The filing of the potential resale covers the resale of up to 53.39 million shares of common stock and 890,000 private warrants. The prospectus relates to up to 23.89 million shares of common stock issuable upon the exercise of outstanding warrants, including private warrants initially issued during the IPO process. Additionally, the offering also covers 53.39 million shares of common stock that may be sold by certain stockholders.
The company has recently announced a recall of 72 of its 2022-2023 battery electric (BEV) trucks due to a defect in the instrument cluster display.
In the third quarter earnings call, Nikola‘s management said it had redelivered 78 BEV trucks to dealers and fleet customers citing “overwhelmingly positive feedback” after a previous major recall that forced the company to fix all its trucks last year.
On the last day of October, amid the release of the third quarter financial results, the EV startup reaffirmed its volume guidance of 300-350 hydrogen-powered trucks by year-end indicating that it expects to produce between 100 and 150 vehicles this quarter.
Written by Cláudio Afonso | LinkedIn | X
