Nikola Corp. shares plunged Monday after a regulatory filing showed the company is planning to issue up to 23.9 million shares.
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The Phoenix-based electric-truck maker said late Friday that it will issue warrants that allow holders to buy shares at $11.50 apiece – 76 percent below the $48.84 where they settled on Friday. The total number of shares outstanding will rise from 360.9 million to 384.8 million if all of the warrants are exercised.
Nikola plans to use the proceeds from the warrants for general corporate purposes.
In the filing, Nikola also announced exiting shareholders could sell up to 53.4 million shares.
Nikola is set to report its second-quarter results on Aug. 4. Wall Street analysts surveyed by Refinitiv expect a 13-cent per-share loss on revenue of $30,000.
Shares were up 45 percent through Friday since going public on June 3 at $33.69 apiece.