Up next


Nikola CEO: Owners of 135 million shares have extended lock-up period

1 Vizualizari
admin
0
Data publicare : 27 Nov 2020 / In Muzica

"We believe that as we execute on our milestones and on our business plan, we're going to reward our long-term focused shareholders," Nikoa CEO Mark Russell said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6

Shares of embattled electric vehicle start-up Nikola Corp. fell by as much as 17.4% during trading Wednesday morning after CEO Mark Russell failed to reassure investors that the company’s $2 billion deal with General Motors would still go through and that ousted founder Trevor Milton wouldn’t suddenly sell off his shares.

During an interview Tuesday on CNBC’s “Mad Money with Jim Cramer,” Russell said discussions with GM about supplying fuel cell and battery technologies as well as an all-electric pickup are ongoing, but he wouldn’t comment much further than that.

“Both of those things are interesting to us,” he said regarding GM’s technologies. “We continue to talk to them about those things.” If a deal isn’t finalized by Dec. 3, either side can walkaway.

Russell also declined to speculate about what Milton, who stepped down as chairman in September, plans to do with the 91.6 million shares he owns after a lock-up period that prevented him from cashing in his equity ends Dec. 1. That includes 6 million shares in “founder options” he gave to the early employees, leaving him with 85.6 million shares. There are roughly 360.9 million shares of company stock outstanding, making Milton Nikola’s largest single shareholder.

All of those shares will be eligible to sell next week, according to the company.

“Can’t comment for Trevor, of course,” Russell said. “But we believe that as we execute on our milestones and on our business plan, we’re going to reward our long-term focus shareholders. That’s our focus, is on the long-term.”

A request for comment from Milton was not returned.

Owners of 136.5 million shares of Nikola agreed to extend their lock-up until April 31, including 39.8 million shares held by a separate company controlled by Russell but owned by Milton called T&M Residual.

Milton stepped down after the Department of Justice and Securities and Exchange Commission started investigating allegations of fraud raised by short-seller Hindenburg in September.

Hindenburg accused Milton of making false statements about Nikola’s technology in order to grow the company and partner with auto companies. The report, titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” was released two days after the company announced a deal with GM that sent both companies’ shares soaring in September. It characterized Nikola as an “intricate fraud built on dozens of lies” by Milton.

Nikola shares closed Tuesday at $34.50, up 17.3% for the day and continuing their volatile streak since the company went public on June 4 in a reverse merger with VectoIQ, a special purpose acquisition company, or SPAC. Shares were trading down about 8%

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/2....9/the-news-with-shep

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

#CNBC #Mad Money #invest #investing #stock market #jim cramer #cramer
Vezi mai multe
0 Comments sort Sortare dupa

Facebook Comments

Up next