Nikola Stock Goes Down Because of a New Agreement To Buy Securities

Nikola Stock

Nikola Stock (NASDAQ:NKLA)

On Friday, Nikola Corporation (NASDAQ:NKLA) announced that it has entered into a Securities Purchase Agreement to issue senior convertible notes with an initial principal amount of up to $125 million via a registered direct offering. As a result, Nikola’s stock declined.

According to a filing with the SEC that was made public on Friday, the business anticipates that it will complete an initial close on Friday for the offering of notes with an aggregate principal amount of $50 million. According to the new information included in the filing, the maximum total principal amount of notes that might be sold at future closings is capped at $75 million. The purchaser can exercise their option to buy additional Notes from the firm until the first anniversary of the day the Purchase Agreement was signed.

The document clarifies that no underwriter or placement agency will be involved in the offering; instead, it will be conducted by the firm directly with the investors. As a result, the business has decided that it will not pay any selling commissions to any third parties in connection with the offering.

After deducting all of the company’s operating expenditures, Nikola stock anticipates receiving about $46.5M in net cash proceeds.

In trading before the market’s opening on Friday, Nikola stock dropped by 3.35% and approximately 75% in 2022.

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