What took place
Shares of electric-automobile (EV) originate-up Nikola (NASDAQ:NKLA) dropped Thursday after the firm disclosed that a worthy shareholder will seemingly be slicing its stake. As of 1: 30 p.m. EDT, the stock turned into once down about 8%.
In an SEC submitting, Nikola published that South Korea’s Hanwha Corp. will seemingly be reducing its stake in the EV firm by about half. Through its Green Nikola Holdings subsidiary, Hanwha has an roughly 5.6% stake in Nikola, with extra than 22 million shares. The firm plans to sell a diminutive bit over 11 million of these shares.
Nikola Tre semi truck. Image provide: Nikola.
The shares may perchance merely no longer essentially be offered appropriate away. The opinion will expire on the dwell of 2021, unless the shares are offered old to that deadline. The reduction in possession may perchance be no longer the dwell of the connection between Nikola and Hanwha. In keeping with Reuters, “A Hanwha Community spokesperson said this may perchance perchance maybe merely consume the proceeds to invest in hydrogen-associated businesses, adding that the aptitude gross sales is rarely any longer an dwell of cooperation with Nikola.”
Nikola has also been elevating contemporary capital neutral currently. It filed to sell shares to buy $100 million earlier this month. Nikola is in the guts of of commissioning prototype vehicles at its Arizona manufacturing plant. The firm said in a separate SEC submitting that proceeds from its neutral currently launched portion sale may perchance merely be ragged “to full our Arizona manufacturing facility, maintain industrial scale BEV and FCEV Class 8 trucks and maintain hydrogen draw infrastructure.”
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Howard Smith owns shares of Nikola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>