Nikola plans to issue an additional US$100 million in shares, and its stock price plummeted 17% upon hearing the news.

(Schematic, Reuters)

[Financial Channel/Comprehensive Report] "Nikola", known as "Tesla in the truck industry", recently stated that due to high production costs, the company plans to issue an additional US$100 million (about NT$3 billion) stock.

As soon as the news came out, Nikola’s share price once plummeted 17.8% on March 31, the company’s biggest one-day drop since January 2021.

"Reuters" reported that Nikola announced after the U.S. stock market last Thursday (March 30) that the company will issue approximately 29.9 million shares to the public and sell 59.4 million shares to hedge fund Antara Capital LP to raise $100 million. Funding, the funds raised will be used for working capital and other general purposes.

Please read on...

The report pointed out that Nikola’s above-mentioned stock issue price was US$1.12 (approximately NT$34) per share, which was 20% lower than the closing price of US$1.4 (approximately NT$42) on the 30th.

As soon as the news came out, the market was worried. Nikola’s stock price fell 17.8% on the 31st, as low as $1.15, and then the decline converged, and finally closed at $1.21, a drop of 13.57%.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news