Investors are punishing Nikola (NASDAQ: NKLA) today, plunging the stock below $1 per share. A company announcement has investors losing confidence in the electric heavy-truck maker's chances for survival. The drop is due to Nikola's latest announcement that it is seeking to raise more money through new offerings of both common stock and convertible senior notes.
Zacks.com users have recently been watching Nikola (NKLA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Nikola Corporation (Nasdaq: NKLA) today announced its intention to offer, subject to market and other conditions, $100,000,000 of common stock and $200,000,000 aggregate principal amount of Green Convertible Senior Notes due 2026 (the "Notes") in separate public offerings registered under the Securities Act of 1933, as amended. Nikola also expects to grant the underwriters of the common stock offering a 30-day option to purchase up to an additional $15,000,000 of common stock to cover over-allot