The company's shares were already down almost 20% on the month before news of the offering hit.
"This prospectus relates to the issuance by us of up to an aggregate of up to 23,890,000 shares of our common stock, $0.0001 par value per share ("Common Stock"), which consists of (i) up to 890,000 shares of Common Stock that are issuable upon the exercise of 890,000 warrants (the "Private Warrants") originally issued in a private placement in connection with the initial public offering of VectoIQ and (ii) up to 23,000,000 shares of Common Stock that are issuable upon the exercise of 23,000,000 warrants (the "Public Warrants" and, together with the Private Warrants, the "Warrants") originally issued in the initial public offering of VectoIQ. We will receive the proceeds from any exercise of any Warrants for cash."
The CEO of the company has been releasing short videos of Nikola's fuel cell-powered electric semi after investors and critics posted doubtful messages on Twitter.
Many are still wary of the upcoming Badger pickup truck offered by the company, as the vehicle has yet to be revealed. Nikola is accepting reservations for the truck, which is planned for a December unveiling.
Benzinga's Take: While this move seems to have pummeled the stock in the after hours Friday, it may be Nikola's best chance for a capital raise.
With more information on the Tesla (NASDAQ: TSLA) Semi expected soon, interest in Nikola's truck may fade.
The stock lost 7.02% in Friday's session and another 14.46% in the after hours session to $41.78.
Photo courtesy of Nikola.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.