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Nikola Corp. , a producer of battery and hydrogen - electric trucks , has taken several footstep to repay its debts and raise fairness , including offering up to$100 millionin a vulgar stock sale .
The beleaguered company is still dealing with the aftershocks of its founder , Trevor Milton , being convict of fraud for makingexaggerated claimsabout the troupe ’s electric truck technology . Milton is currently on bail while he appeals his conviction of afour - year prison sentenceand must pay Nikola apenalty of $ 167.7 million . The drama has damage the company ’s reputation , which has led to a loss of investor self-assurance , financial troubles , and increased scrutiny of its operations .
Nikola produce and shipped 203 trucks to day of the month this class , a disk for the companionship , but it did so at a $ 481 million net red . The truck maker has countersink a destination to sell 300 to 350 of its FCEV hydrogen - electric semi hand truck by the ending of 2024 .
Nikola’sfilingswith the Securities and Exchange Commission Monday show a fellowship that is hear to strengthen its fiscal position , but in doing so will probably dilute exist shareholders . Nikola signify to expend the proceeds from the $ 100 million sale for bring capital and worldwide corporate intention . Nikola noted that it will invest most of the proceeds in short- and medium - term fiscal official document , but may also use some of the immediate payment to “ acquire or invest in a complemental business , assets or technology . ”
The company alsofiledMonday to resell up to 34.2 million convertible note portion , which would allow noteholders to convince their debt to equity and deal the resulting part . While this would n’t produce any cash stream for Nikola , it would give noteholders an expiration strategy and access code to fluidity .
Nikola last week managed to secure $ 65 million by sell stock to holders of its exchangeable notes , which temporarily increased the conversion charge per unit for those note until January 31 , 2025 . The current changeover price for noteholders is about $ 3.12 per share , whereas Nikola ’s Malcolm stock opened at $ 1.46 per plowshare ( which is down intimately 10 % from pre - market trading ) .
As Nikola forge to stop up Johnny Cash stream , it is also trying to get a grip on its debt . In the nine month terminate September 30 , Nikola recorded$656 million in full liabilities . The company appears to have chip out at $ 39.4 million of that Libra the Balance after to the full repaying its Series B-1 Notes from an agreement go steady August 19 , 2024 .
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chastisement : A former version of this clause misstated the status of Trevor Milton ’s prison house time .
