NKLA - Nikola stock slips on new securities purchase agreement

Nikola Corporation ( NASDAQ: NKLA ) disclosed its entry into a Securities Purchase Agreement for the sale of up to $125M in initial principal amount of senior convertible notes in a registered direct offering on Friday.

According to an SEC filing released on Friday, the company expects to consummate an initial closing for the sale of $50M in aggregate principal amount of notes on Friday. The filing adds that the aggregate principal amount of notes that may be offered in the additional closings may not be more than $75M.  The company’s option to sell additional Notes will be exercisable until the first anniversary of the date of the Purchase Agreement.

The filing stipulates that the offering is being made by the company directly to investors, without an underwriter or placement agent. As such, the company will not pay any selling commission to any party in connection with the offering.

Nikola ( NKLA ) estimates that the net cash proceeds will be approximately $46.5M after expenses.

Shares of Nikola Corporation ( NKLA ) fell 3.35% in premarket trading on Friday. Nikola stock has slumped over 75% in 2022.

Read more on the company’s recent agreement with Plug Power .

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