- Nikola plans to raise $100 million by selling shares at a deep discount.
- The electric-truck maker said Thursday it would sell shares for $1.12.
- The company’s stock has plummeted since September 2020, when short-selling Hindenburg Research released a report attacking the company.
Nikola plans to raise an additional $100 million through its public offering by selling its shares to record low market prices at a significant discount.
The electric truck manufacturer says: statement On Thursday, it planned to raise $100 million by going public with 29.9 million shares and selling another 59.4 million shares to unnamed investors.
this is Stock price is just $1.12 As part of the IPO, the stock is off 20% from its all-time low of $1.40 by Thursday’s close.
Nikola has been in trouble since September 2020, when activist investor Hindenburg Research said the company was shorting its shares because it overstated and misrepresented its products. .
Nikola shares have plunged about 95% since Hindenburg released its share price. first report Joined the company on September 10th.
In October 2022, company founder Trevor Milton announced that convicted of fraud After it was discovered that he had lied about Nicola’s technology to boost the stock price.
The company announced Thursday that it planned to sell $100 million worth of stock to the public and another $100 million to unnamed investors, but later backtracked to raise $100 million in two sales. Stated.
Citigroup underwrote the additional offering, and Nicola said the proceeds would be used for working capital and other corporate purposes.
Nikola shares fell 6% to about $1.32 in pre-opening trading on Friday.