Why Nikola Shares Are Falling

Why Nikola Shares Are Falling

Nikola Corp NKLA shares are trading lower by 8.12% to $5.48 Tuesday morning after the company filed a prospectus related to the issuance and sale of common stock from time to time up to $400 million. The company also announced an exchange offer to purchase all outstanding shares of Romeo Power Inc RMO.

What Happened?

Nikola says, under the terms of the agreement, Romeo stockholders will receive 0.1186 of a share of Nikola common stock for each Romeo share, representing an approximate 4.5% pro forma ownership of Nikola. The proposed exchange ratio represents an approximately 34% premium to Romeo's July 29, 2022 closing share price.

Nikola says, upon the successful completion of the offer, a newly formed subsidiary of Nikola will be merged into Romeo, and any remaining shares of Romeo common stock that were not tendered in the exchange offer will be canceled and converted into the right to receive the same consideration as provided for in the exchange offer.

See Also: If You Invested $100 In Tesla, AMD, Nvidia, Apple, Microsoft, Amazon And Plug Power Stock 5 Years Ago, Here's How Much You'd Have Now

According to data from Benzinga Pro, Nikola has a 52-week high of $15.56 and a 52-week low of $4.42.

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