- Nikola on Thursday announced plans for a $100 million secondary stock offering.
- The deal was offered at a 20% discount through Thursday’s close, dragging shares of the truckmaker lower on Friday morning.
Nikola Motor Company
Source: Nikola Motor Company
Heavy-duty electric truck maker Nikola said its proposed $100 million secondary offering, announced Thursday after the U.S. market closed, is priced at $1.12 a share — 20% below The stock closed at $1.40.
Shares fell more than 15% Friday morning to hit a fresh 52-week low.
Despite the discount, Wall Street appears to have had very little interest in the stock. Nikola’s underwriter Citigroup was only able to place about a third of the shares with its customers. An unnamed private investor has agreed to buy the remainder directly from Nikola, the truckmaker said.
Nikola plans to use the money raised for working capital and other general purposes. The company is preparing to launch a new electric long-distance semitrailer that will be powered by hydrogen fuel cells later this year. The new truck will complement Nikola’s shorter-range Tre battery-electric heavy-duty truck, which was delivered last year.
Nikola had $233.4 million in cash and cash equivalents as of December 31. The truck maker lost $222.1 million in the fourth quarter of 2022.