Nikola Corp NKLA is in hot waters as its shares are plummeting during after-hours trading following a jaw-dropping announcement.
What Just Happened: After Wednesday’s market close, Nikola revealed its plans to roll out $100 million of common stock and $200 million of green convertible senior notes due 2026 in separate public offerings.
In addition, Nikola is also set to give the underwriters of the common stock offering a 30-day option to purchase up to an additional $15 million of common stock and grant the underwriters of the notes offering the option to purchase up to an additional $30 million of the notes.
Nikola’s objective is to utilize the net proceeds from the common stock offering for operational purposes and other general corporate needs while allocating an equivalent amount of the net proceeds from the notes offering to fund, refinance, or directly invest in one or more current or future eligible projects.
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NKLA Stock Activity: Since the beginning of the year, Nikola shares have plummeted by more than 54%. At the time of publication, the stock was down 15.51% after hours at 98 cents, as reported by Benzinga Pro.
Photo: Courtesy of Nikola