San Pedro, CA - December 17: The first two zero-emissions electric trucks, from an order of 100 vehicles, delivered from the Nikola Corporation to Total Transportation Services at the Port of Los Angeles in San Pedro on Friday, December 17, 2021. Brittany Murray | MediaNews Group | Getty Images
DETROIT – Nikola Corp. will ask for shareholder approval to further dilute the company’s stock by adding 200 million new shares to raise capital as it scales production of its first electric semitruck.
The company said the increase – from 600 million to 800 million shares – is in the “best interests” of the company and its shareholders, according to Nikola’s proxy statement filed Friday to the Securities and Exchange Commission.
If shareholders don’t approve the increase during its annual meeting scheduled for June 1, the company said it “may be constrained in its ability to raise capital in order to support our business objectives, and may lose important business opportunities, including to competitors, which could adversely affect our financial performance and growth.”
Based on Nikola’s closing price Monday of $6.87 a share – down from a 52-week high of $19.52 – the company would raise about $1.4 billion in capital from the additional shares. Nikola’s stock has declined about 30% in 2022, including an 8.6% fall on Monday.
Nikola has about 414 million outstanding shares, according to FactSet.
Nikola CFO Kim Brady last month said the embattled electric vehicle company, which recently settled a federal probe that charged it with misleading investors, would “monitor the equity capital markets closely and raise additional capital when appropriate in 2022.”
Nikola had a cash balance of $522 million at year-end, and it expects to spend between $295 million and $305 million in 2022. It also reported to have about $436 million of available liquidity through two equity lines. CNBC - link - Michael Wayland - link - more like this (USA) - link - more like this (electric trucks) - link
The company said the increase – from 600 million to 800 million shares – is in the “best interests” of the company and its shareholders, according to Nikola’s proxy statement filed Friday to the Securities and Exchange Commission.
If shareholders don’t approve the increase during its annual meeting scheduled for June 1, the company said it “may be constrained in its ability to raise capital in order to support our business objectives, and may lose important business opportunities, including to competitors, which could adversely affect our financial performance and growth.”
Based on Nikola’s closing price Monday of $6.87 a share – down from a 52-week high of $19.52 – the company would raise about $1.4 billion in capital from the additional shares. Nikola’s stock has declined about 30% in 2022, including an 8.6% fall on Monday.
Nikola has about 414 million outstanding shares, according to FactSet.
Nikola CFO Kim Brady last month said the embattled electric vehicle company, which recently settled a federal probe that charged it with misleading investors, would “monitor the equity capital markets closely and raise additional capital when appropriate in 2022.”
Nikola had a cash balance of $522 million at year-end, and it expects to spend between $295 million and $305 million in 2022. It also reported to have about $436 million of available liquidity through two equity lines. CNBC - link - Michael Wayland - link - more like this (USA) - link - more like this (electric trucks) - link
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