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Nikola pronounces a $100 million inventory providing

U.S. Nikola’s brand is pictured at an tournament held to offer CNH’s new full-electric and Hydrogen fuel-cell battery vans in partnership with U.S. Nikola tournament in Turin, Italy, December 3, 2019.

Massimo Pinca | Reuters

Electrical heavy-truck maker Nikola mentioned on Thursday that it plans to lift $100 million by means of a secondary inventory providing to the general public and — in all probability — a non-public sale of inventory to an unnamed investor, if wanted.

The corporate’s stocks have been down about 5% in after-hours buying and selling following the scoop.

Nikola’s plan to lift capital is available in two portions. First, the corporate mentioned, it is going to be offering as much as $100 million value of inventory to the general public by means of a standard secondary providing, with Citigroup underwriting. Citigroup will have the opportunity to buy an extra $15 million value of stocks.

Secondly, Nikola mentioned it has entered right into a ahead inventory acquire settlement with an unnamed investor. If the general public providing raises not up to $100 million, that investor has agreed to shop for the rest on the public providing worth.

Both approach, Nikola will lift $100 million ahead of charges, cash that it plans to make use of for running capital and different normal functions.

Nikola is slowly ramping up manufacturing of its electrical semitrucks after development simply 258 battery-electric vans in 2022. The corporate mentioned final month that it expects to construct between 250 and 350 of the battery-electric semis in 2023, at the side of 125 to 150 of its upcoming fuel-cell-powered vans, set to release q4. The fuel-cell vans could have longer vary than the battery-electric variations.

Nikola had $233.4 million in money and equivalents to be had as of Dec. 31, down from $315.7 million on the finish of September. The corporate misplaced $222.1 million within the fourth quarter of 2022.

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