Why Nikola (NKLA) Shares Are Down 45% Over The Past Month

Nikola Corp NKLA shares are trading lower by 5.3% to $1.24 Monday morning and 16% over the trailing five sessions.

The company last week announced its intention to conduct a registered direct offering involving senior convertible notes, the total value of which could reach up to $325 million. Anticipated net proceeds for Nikola stand at approximately $124.5 million.

Furthermore, Nikola has outlined in a recent regulatory filing that the holders of these shares have the potential to engage in the resale of the specified shares, derived from the conversion of notes. Nikola says the company will not accrue any proceeds from these sales.

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Nikola shares are also down roughly 45% over the trailing month, with much of the selling pressure coming after a nearby fire led to the voluntary recall of over 200 vehicles, prompting a temporary halt on new BEV sales as the issues are addressed.

According to data from Benzinga Pro, NKLA has a 52-week high of $6.35 and a 52-week low of $0.52.