Prime Mover Magazine


Nikola debuts on share market

Hydrogen and battery powered truck maker, Nikola, officially became a publicly traded company this week following a successful reverse merger with acquisition firm VectoIQ.

Stockholders for VectoIQ voted in favor of the approval at its annual meeting which will see Nikola (NKLA) replace VTIQ on the NASDAQ from 4 June.

VectoIQ was created by former General Motors Vice Chairman Steve Girsky in March.

Girsky has joined the Nikola board as an advisor.

In addition to pledging its own $US230 million, VectoIQ raised $US525 million from mutual funds and other investors through a private investment in public equity that allowed buyers to purchase shares in the SPAC for $10 apiece.

Nikola has ambitious plans in the short term. The company has reportedly raised $US700 million in equity from the transaction which it is looking to invest in production of the Nikola TRE in Europe next year, a brand new Arizona factory, the roll out of its hydrogen fueling stations and the recent unveiling of a futuristic pickup launched as the Nikola Badger.

The news follows in the footsteps of rival startup Tesla which went public eight years ago. 

Last week the battery pioneer and electric vehicle specialist became the first private company to send astronauts into space. 

Nikola Founder Trevor Milton, who is now Arizona's newest billionaire, holds a 42 per cent stake in the company.

Milton relinquished his role of CEO after the merger. He will assume the position of Executive Chairman.

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