Why Nikola Stock Is Getting Hammered

Nikola Corp NKLA shares are trading lower by 13.57% to $1.21 Friday morning after the company announced pricing for a $100 million common stock offering.

What Happened?

The offering will be at a price of $1.12 per share. Nikola will sell 29,910,715 shares of common stock to the public in the public offering and 59,374,999 shares of common stock to an investor in the concurrent registered direct offering pursuant to a forward stock purchase agreement.

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

According to data from Benzinga Pro, NKLA has a 52-week high of $10.88 and a 52-week low of $1.15.