Nikola stocks sink after its $100 million inventory providing priced at 20% beneath marketplace

Nikola Motor Corporate

Supply: Nikola Motor Corporate

Electrical heavy-truck maker Nikola stated that its deliberate $100 million secondary inventory providing, introduced on Thursday after U.S. markets closed, has priced at $1.12 in line with proportion – 20% beneath the inventory’s Thursday ultimate value of $1.40.

Nikola’s stocks closed on Friday at $1.21, down over 13%.

Even with the cut price, there seems to had been very restricted passion within the stocks on Wall Boulevard. Nikola’s underwriter, Citigroup, was once most effective ready to position a couple of 3rd of the stocks with its shoppers. An unnamed personal investor has agreed to shop for the remaining at once from Nikola, the truck maker stated.

Nikola plans to make use of the cash raised for running capital and different common functions. The corporate is making ready to release a brand new long-range electrical semitruck powered by way of hydrogen gasoline cells later this yr. The brand new truck will supplement Nikola’s shorter-range Tre battery-electric heavy truck, which started delivery closing yr.

Nikola had $233.4 million in money and equivalents to be had as of Dec. 31. The truck maker misplaced $222.1 million within the fourth quarter of 2022.