Nikola Announces $100 Mln Stock Offering

(RTTNews) - Shares of Nikola Corporation (NKLA) Thursday slipped nearly 4% in extended trading session after the company announced that it has commenced a public offering of up to $100 million of common shares.

Nikola expects to grant the underwriter a 30-day option to purchase up to an additional $15.0 million of shares of its common stock at the public offering price.

Concurrently with the public offering, Nikola has entered into a forward stock purchase agreement with an investor, whereby the investor has agreed to purchase up to $100.0 million of shares of common stock from Nikola in a concurrent registered direct offering at the public offering price.

Nikola currently intends to use the proceeds from the offering and the concurrent registered direct offering for working capital and other general corporate purposes.

Citigroup is acting as the sole book-running manager for the proposed public offering.