Nikola’s stock drops 16% after EV company announces equity raise, convertible debt raise

Nikola’s stock drops 16% after EV company announces equity raise, convertible debt raise

Shares of Nikola Corp. NKLA, +1.28% fell more than 16% in the extended session Wednesday after the EV company said it plans to raise $100 million of stock and $200 million in convertible notes due 2026 in two separate public offerings.

Nikola said it plans to grant underwriters of the stock offering an option to buy up to an additional $15 million, and grant the underwriters of the notes offering an option to buy an additional $30 million. BTIG is lead book runner. Nikola intends to use proceeds from the common stock offering for working capital and other general corporate purposes and to allocate an amount equal to the net proceeds from the notes offering to finance, refinance, or make direct investments in its projects. Shares of Nikola ended the regular trading day up 1.3%.

 

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