Nikola announces a $100 million stock offering

U.S. Nikola’s symbol is pictured at an event held to present CNH’s new whole-electric and Hydrogen gas-cell battery vans in partnership with U.S. Nikola event in Turin, Italy, December 3, 2019.

Massimo Pinca | Reuters

Electric powered major-truck maker Nikola reported on Thursday that it options to increase $100 million via a secondary stock giving to the public and — probably — a private sale of stock to an unnamed investor, if wanted.

The company’s shares have been down about 5% in soon after-hrs trading next the news.

Nikola’s approach to increase capital comes in two sections. First, the company mentioned, it will supply up to $100 million truly worth of inventory to the general public via a classic secondary giving, with Citigroup underwriting. Citigroup will have the choice to buy an more $15 million worth of shares.

Secondly, Nikola reported it has entered into a ahead stock purchase arrangement with an unnamed trader. If the general public giving raises less than $100 million, that investor has agreed to buy the remainder at the public giving rate.

Either way, Nikola will elevate $100 million just before charges, dollars that it plans to use for doing work funds and other common functions.

Nikola is slowly and gradually ramping up manufacturing of its electric semitrucks following making just 258 battery-electrical vehicles in 2022. The organization reported very last month that it expects to develop among 250 and 350 of the battery-electric powered semis in 2023, alongside with 125 to 150 of its forthcoming gasoline-cell-driven trucks, set to start this tumble. The fuel-cell vans will have longer vary than the battery-electric variations.

Nikola had $233.4 million in income and equivalents readily available as of Dec. 31, down from $315.7 million at the conclusion of September. The firm lost $222.1 million in the fourth quarter of 2022.