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Nikola broadcasts a $100 million inventory providing

U.S. Nikola’s emblem is pictured at an occasion held to current CNH’s new full-electric and Hydrogen fuel-cell battery vehicles in partnership with U.S. Nikola occasion in Turin, Italy, December 3, 2019.

Massimo Pinca | Reuters

Electrical heavy-truck maker Nikola stated on Thursday that it plans to lift $100 million through a secondary inventory providing to the general public and — probably — a non-public sale of inventory to an unnamed investor, if wanted.

The corporate’s shares had been down about 5% in after-hours buying and selling following the information.

Nikola’s plan to lift capital is available in two components. First, the company said, it is going to supply as much as $100 million value of inventory to the general public through a standard secondary providing, with Citigroup underwriting. Citigroup may have the choice to buy an extra $15 million value of shares.

Secondly, Nikola stated it has entered right into a ahead inventory buy settlement with an unnamed investor. If the general public providing raises lower than $100 million, that investor has agreed to purchase the rest on the public providing worth.

Both method, Nikola will increase $100 million earlier than charges, cash that it plans to make use of for working capital and different basic functions.

Nikola is slowly ramping up manufacturing of its electrical semitrucks after constructing simply 258 battery-electric vehicles in 2022. The corporate stated final month that it expects to construct between 250 and 350 of the battery-electric semis in 2023, together with 125 to 150 of its upcoming fuel-cell-powered vehicles, set to launch this fall. The fuel-cell vehicles may have longer vary than the battery-electric variations.

Nikola had $233.4 million in money and equivalents out there 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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