After the announcement of a public offering of 29.91 million shares of common stock, Nikola Corporation (NKLA:NSD) shares dropped by more than 7 percent in Thursday’s after-hours trade. The producer of electric heavy trucks has priced the offering at $1.12 per share, a 20% decrease from the previous day’s closing price. Citigroup (C) is the only underwriter for this offering and has a 30-day option to acquire up to 4.49 million more shares. The planned closing date for the offering is April 4.
Moreover, Nikola has agreed to sell 59.37 million additional shares of common stock to an unidentified investor. The direct offering is anticipated to close on April 11 and is independent of the closure of the public offering. The estimated total gross proceeds from both sales are $100 million, which will be used for working capital and other general corporate purposes.
Although Nikola has recently made positive announcements, such as receiving its 100th order for its Tre hydrogen fuel cell electric trucks and partnering with Chart Industries to purchase hydrogen production equipment for Class 8 heavy trucks, investors remain uncertain due to the departure of the company’s current chief financial officer.
NKLA stock forecast has a current consensus rating of Buy. The average Nikola stock price target of $4.94 suggests a potential upside of 185.7%.
