Nikola Corp. is strapped for money.
The Phoenix-based electric-truck firm is dropping upward of $150 million per quarter and holds about $150 million in money and receivables on its stability sheet.
The firm can increase as much as $500 million going ahead by means of current credit score and mortgage agreements. It may additionally borrow in opposition to its buildings and different belongings to lift funds, Anastasiya Pasterick, the corporate’s just lately appointed CFO stated Tuesday throughout the firm’s first-quarter earnings name.
“I remain cautiously optimistic,” stated Pasterick about Nikola’s entry to capital markets.
Nikola is retooling its technique. Executives stated they’re going to refocus operations in North America with an emphasis on gasoline cell vehicles and a nascent hydrogen refueling enterprise, HYLA.
The firm has additionally ended a three way partnership with Italy’s Iveco Group to construct battery-electric vehicles in Europe. Nikola will promote its stake in Iveco again to the corporate for $35 million. Iveco will even buy 20 million shares of Nikola.
Nikola misplaced $169 million, or 31 cents per share within the first quarter of 2023, just a little greater than the $152.9 million the corporate misplaced within the first quarter final yr. But the corporate’s 2023 first-quarter revenues reached $11.1 million, up from $1.88 million yr over yr.
Pasterick stated she needed to get the corporate’s per-quarter money burn under $100 million. About half of Nikola’s spending may be attributed to ramping up manufacturing of gasoline cells, she stated.
In a associated improvement that emerged Wednesday, Nikola stated it desires to lift further funds by means of the issuance of further capital inventory, which can dilute the corporate’s inventory value.
Nikola closed at 86 cents per share on Tuesday and opened at 83 cents per unit on May 10. Over the previous yr Nikola shares have declined 85 p.c. At this time final yr, Nikola traded at $5.57 per share.
In a video despatched to shareholders, Lohscheller appealed to their concern for the surroundings and urged them to vote for a proxy proposal that may double Nikola shares obtainable for buy to 1.6 billion from 800 million.
“Nikola is in a capital intensive energy and transportation business. Trucks and fueling stations are expensive,” Lohscheller stated. “Our goal is to change the way the world transports goods so we aren’t damaging our planet.”
The deadline for shareholders to vote for or in opposition to to proposal is June 6 at 11:59 p.m. EDT.
Source: www.autonews.com