Nikola announced on Thursday plans to raise $100 million in capital through a public stock offering, and a potential private sale of stock to an undisclosed investor.
The electric heavy-duty truck manufacturer will offer up to $100 million in stock to the public via a traditional secondary offering, with Citigroup underwriting. Citigroup will have a 30-day option to purchase an additional $15 million worth of shares.
Additionally, Nikola has entered into a forward stock purchase agreement with an unnamed investor, who has agreed to buy the remaining shares at the public offering price if the public offering raises less than $100 million. Regardless of the method, Nikola will raise $100 million before fees, which it says will go towards “working capital and other general purposes.”
In 2022, Nikola only produced 258 battery-electric trucks. However, the company plans to build between 250 and 350 battery-electric semis in 2023, along with 125 to 150 hydrogen fuel-cell-powered trucks set to launch in the fall. The fuel-cell trucks will have longer ranges than the battery-electric versions.
As of Dec. 31, Nikola had $233.4 million in cash and equivalents available, down from $315.7 million at the end of September, and it lost $222.1 million in the fourth quarter of 2022.
Nikola (NKLA) shares fell more than 10% in after-hours trading following the announcement, but have since rebounded to be down around 6% to $1.31. That price is well off the all-time high of above $65 in June 2020 when former CEO Trevor Milton was at the helm and exaggerating their technology and the capabilities of their Nikola One semi truck, for which he was eventually found guilty of securities and wire fraud.