On August 19, 2024, Nikola Corporation entered into a Securities Purchase Agreement with certain investors for the sale of up to $160 million in senior convertible notes, with an initial closing of $80 million expected on the same date. The notes, which are convertible into common stock, are part of a registered direct offering under the company's existing shelf registration statement. The agreement includes provisions for additional closings up to $80 million, subject to investor consent and certain conditions, until the 18-month anniversary of the agreement. Nikola estimates net proceeds of approximately $74.3 million from the initial closing after offering expenses. The notes will accrue interest at 5% per annum, capitalizing quarterly, with an increased rate of 12.5% in the event of default. They are senior unsecured...Show More

On August 19, 2024, Nikola Corporation entered into a Securities Purchase Agreement with certain investors for the sale of up to $160 million in senior convertible notes, with an initial closing of $80 million expected on the same date. The notes, which are convertible into common stock, are part of a registered direct offering under the company's existing shelf registration statement. The agreement includes provisions for additional closings up to $80 million, subject to investor consent and certain conditions, until the 18-month anniversary of the agreement. Nikola estimates net proceeds of approximately $74.3 million from the initial closing after offering expenses. The notes will accrue interest at 5% per annum, capitalizing quarterly, with an increased rate of 12.5% in the event of default. They are senior unsecured obligations with a one-year maturity, extendable under certain conditions, and include customary covenants and conversion terms. The conversion price is subject to a floor price and may be adjusted in certain events. Nikola also agreed not to engage in variable rate transactions beyond specified existing ones until the notes are no longer outstanding. Concurrent with this new agreement, Nikola terminated a prior purchase agreement from August 21, 2023, for the sale of up to $325 million in senior convertible notes.