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This unique offering stands out as it is being made directly to investors, bypassing the need for an underwriter or placement agent. Consequently, no selling commission will be disbursed to any party in relation to this offering.
The company estimates that it will receive around $124.5M from the initial closing of the offering. Each note will gather interest at 5.0% per year, and payments will start on the first day of each quarter, beginning January 1, 2024.
To move forward with the first phase of the closing, Nikola Corp has decided to end a Common Stock Purchase Agreement with Tumim Stone Capital LLC, which was established on September 24, 2021. This action is essential to meet the demands of the offering.
In general, this agreement to purchase securities represents a notable advancement for Nikola Corp as it aims to secure funds and enhance its market standing.
Shares of NKLA are down 12.7% in premarket trading Monday morning.
