Nikola Shares Falter on Hints of New Stock Offering

Nikola (NYSE:NKLA) fell 5% after it announced plans to raise $100 million through a secondary stock offering, or a private sale of stock if needed.

The electric truck maker will sell ~29.91 million common shares to the public in the public offering and ~59.37M shares to an investor in the registered direct offering under a forward stock purchase agreement.

Nikola has granted the underwriter a 30-day option to buy up to an additional ~4.48M shares at the public offering price.

The company expects to use the net proceeds for working capital and other general corporate purposes.

The public offering is expected to close around April 4, while the registered direct offering is anticipated to close around April 11.

Nikola currently intends to use the net proceeds from the public offering and the concurrent registered direct offering for working capital and other general corporate purposes.

Citigroup is acting as the sole book-running manager for the proposed public offering.

Nikola Corporation is globally transforming the transportation industry. “As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, via the HYLA brand,” according to the company website, “Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today.”

NKLA shares sank 22 cents, or 15.7%, to $1.18.