PHOENIX, Sept. 27, 2021 /PRNewswire/ -- Nikola
Corporation (NASDAQ: NKLA) and Tumim Stone Capital LLC (Tumim)
have entered into a second $300
million common stock equity line purchase agreement,
providing Nikola the right to issue and sell to Tumim up to
$600 million of Nikola's common stock
in aggregate, subject to certain conditions and limitations.
"The equity lines with Tumim, together with estimated cash and
cash equivalents, will provide Nikola with access to
approximately $800 million of liquidity at the end of 2021,"
said Nikola CEO Mark Russell. "We
believe this will provide ample liquidity for Nikola to fund our
stated operational milestones through the end of 2022, which
include the commercial delivery of BEV trucks as well as the start
of road release and pilot testing of FCEV trucks."
Nikola CFO Kim Brady commented on
the agreement: "Since entering into the original equity line
purchase agreement on June 11, 2021,
Nikola has issued approximately $47
million of common stock to Tumim. We view this second equity
line purchase agreement as a financing tool that allows Nikola to
leverage the healthy daily liquidity in our stock while giving us
considerable flexibility around issuance timing to minimize
dilution. We have no obligation to fully utilize either facility,
and we continue to consider other sources, including the broader
capital markets, which we view as our principal source of financing
for Nikola."
Maier Tarlow,
managing partner of Tumim added: "We are excited to be part of
Nikola's journey towards large-scale production of zero-emission
battery-electric and hydrogen-electric commercial vehicles. Subject
to the terms of the Purchase Agreement, Nikola can issue shares to
Tumim on dates of its choosing under the ELOC. We look forward to
continuing to be a long-term partner with the Company."
Under this second equity line purchase agreement, Nikola has the
right, but not the obligation to sell up to $300 million of additional shares of its common
stock to Tumim, subject to certain limitations. Purchase notices
may be issued to Tumim over the period commencing from the date of
the purchase agreement and ending on the first day of the month
following the 36-month anniversary. The shares will be issued at a
3% discount to the three-day forward volume-weighted average price
from the date a purchase notice is issued. Nikola issued Tumim
252,040 shares of common stock as consideration for Tumim's
irrevocable commitment to purchase Nikola common stock under the
new purchase agreement. Further details will be contained in
the Current Report on Form 8-K Nikola intends to file later
today.
ABOUT NIKOLA CORPORATION
Nikola Corporation is globally transforming the transportation
industry. As a designer and manufacturer of zero-emission
battery-electric and hydrogen-electric vehicles, electric vehicle
drivetrains, vehicle components, energy storage systems, and
hydrogen station infrastructure, Nikola is driven to revolutionize
the economic and environmental impact of commerce as we know it
today. Founded in 2015, Nikola Corporation is headquartered in
Phoenix, Arizona. For more
information, visit www.nikolamotor.com or
Twitter @nikolamotor.
ABOUT TUMIM STONE CAPITAL
3i, the Manager and General
Partner of Tumim Stone Capital, is a New
York-based investor that focuses on public companies. Our
goal is to provide transparent investments and form longstanding
partnerships with companies with a propensity for innovation.
FORWARD LOOKING STATEMENTS
Certain statements included
in this press release that are not historical facts are
forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995. Forward-looking statements generally are accompanied by words
such as "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect," "should," "would," "plan,"
"predict," "potential," "seem," "seek," "future," "outlook," and
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding the potential benefits of the equity lines of
credit; the Company's expectations regarding its future capital
levels, capital requirements, and sources of capital; and the
Company's beliefs regarding the capital necessary to fund its
stated operational milestones. These statements are based on
various assumptions, whether or not identified in this press
release, and on the current expectations of Nikola's management and
are not predictions of actual performance. Forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results to differ materially from the
forward-looking statements, including but not limited to, design
and manufacturing changes and delays; failure to realize the
anticipated benefits of the agreements; the effects of dilution;
general economic, financial, legal, regulatory, political and
business conditions and changes in domestic and foreign markets;
the potential effects of COVID-19; the outcome of legal, regulatory
and judicial proceedings to which Nikola is or may become a party;
demand for and customer acceptance of Nikola's trucks; risks
associated with development and testing of fuel cell power modules
and hydrogen storage systems; risks related to the rollout of
Nikola's business and the timing of expected business milestones;
the effects of competition on Nikola's future business; the sources
and availability of capital and future capital needs; risks
associated with changes in accounting treatment or accounting
standards; and the other risks detailed from time to time in
Nikola's reports filed with the Securities and Exchange Commission,
including its quarterly report on Form 10-Q for the quarter ended
June 30, 2021 and other documents
Nikola files with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. These
forward-looking statements speak only as of the date hereof and
Nikola specifically disclaims any obligation to update these
forward-looking statements.
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SOURCE Nikola Corporation