- Nikola said it will raise $100 million to the public through a secondary stock offering.
- If the public offering of shares raises less than $100 million, a private investor has agreed to buy enough shares to make up the difference.
- The company had approximately $233 million at year-end.
The US Nikola logo is pictured at an event held in Turin, Italy, on December 3, 2019 to showcase CNH’s new all-electric, hydrogen-powered fuel cell battery trucks in partnership with the US Nikola event.
Massimo Pinca | Portal
Heavy-duty electric truck maker Nikola said Thursday it plans to raise $100 million via a second share offering to the public and – possibly – a private sale of shares to an unnamed investor if necessary.
Shares of the company fell about 5% in after-hours trading following the news.
Nikola’s fundraising plan has two parts. First, the company says it will offer up to $100 million worth of stock to the public through a traditional secondary offering, which will be acquired by Citigroup. Citigroup will have an option to purchase an additional $15 million of shares.
Second, Nikola said it has entered into a forward stock purchase agreement with an unnamed investor. If the public offering raises less than $100 million, that investor has agreed to buy the remainder at the public offering price.
In either case, Nikola will raise $100 million before fees, money to be used for working capital and other general purposes.
Nikola is slowly ramping up production of its electric semi-trucks after building just 258 battery-electric semi-trailers in 2022. The company announced last month that it expects to build between 250 and 350 of its battery-electric semi-trailers in 2023, along with 125 to 150 of its upcoming fuel cell-powered trucks due to launch this fall. The fuel cell trucks have a greater range than the battery-electric versions.
Nikola had $233.4 million in cash and cash equivalents as of December 31, compared to $315.7 million at the end of September. The company lost $222.1 million in the fourth quarter of 2022.