Nikola Corp NKLA shares are trading lower Monday after the company announced an agreement to sell up to $325 million in aggregate principle amount of senior convertible notes.
What Happened: In a new regulatory filing, Nikola said it plans to offer up to $325 million of senior convertible notes in a registered direct offering. The company plans to close on approximately $125 million on Monday, so additional closings will not exceed $200 million.
Nikola said it expects to generate net proceeds of approximately $124.5 million.
Nikola shares are down nearly 10% year-to-date and more than 64% over the last year. The stock has seen increased selling pressure over the last month after a fire near its headquarters ultimately led to a voluntary recall of more than 200 vehicles. The company said it was placing a temporary hold on new BEV sales until the issues were resolved.
NKLA Price Action: Nikola shares were down 13.8% at $1.69 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Nikola.
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