Written by Cláudio Afonso | LinkedIn | X
Shares of Nikola are down 11% on Monday after the truckmaker disclosed in a new SEC filing a purchase agreement with investors to sell up to $160 million in convertible senior notes.
After delivering 40 fuel cell trucks in the first quarter of the year and 72 on the second one, the Arizona based company is targeting annual deliveries to be between 300 and 350 units.
Nikola expects the net proceeds of the initial sale of $80 million to be about $74.3 million after subtracting the offering-related expenses.
“The aggregate principal amount of Notes that may be offered in the additional closings may not be more than $80,000,000, and the option to sell additional Notes will be exercisable, with the consent of the Investors, until the 18 month anniversary of the date of the Purchase Agreement,” Nikola stated in the filing.
The company also filed a shelf registration to sell shares up to $500 million, including debt securities.
“We may, from time to time, offer and sell the securities identified above in one or more offerings. The aggregate initial offering price of all securities sold under this prospectus will not exceed $500,000,000,” the company stated.
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The Notes are convertible into shares of the Company’s common stock, $0.0001 par value per share, subject to certain conditions and limitations.
The Company expects to consummate an initial closing for the sale of $80,000,000 in aggregate principal amount of Notes on or about August 19, 2024.
The Company estimates that the net cash proceeds from the closing of the Offering will be approximately $74.3 million, after deducting estimated expenses of the Offering.
The Offering is being made pursuant to the Company’s existing shelf registration statement from April 2022.
Written by Cláudio Afonso | LinkedIn | X
