Nicholas automotive company
Source: Nikola Motor Company
Manufacturer of electric trucks Nikola said its planned $100 million secondary stock offering, announced Thursday after US markets closed, was priced at $1.12 a share – 20% below Thursday’s closing price of $1.40.
Nikola’s shares closed at $1.21 on Friday, down greater than 13%.
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Even at a reduction, interest in Wall Street equities seems to have been very limited. Nikola’s underwriter, Citigroup, was only in a position to place a couple of third of the shares with its clients. An unnamed private investor has agreed to purchase the rest directly from Nikola, the truckmaker said.
Nikola plans to make use of the cash raised for working capital and other general purposes. The corporate is preparing to launch a latest long-haul electric truck powered by hydrogen fuel cells later this 12 months. The brand new truck will complement Nikola’s Tre short-range electric truck, which went on sale last 12 months.
Nikola had $233.4 million in money and equivalents available as of December 31. The truck maker lost $222.1 million within the fourth quarter of 2022.