Nikola to go public by merging with VectoIQ
PHOENIX, Ariz. — Nikola Corp., a leader in the design and development of zero-emission heavy-duty trucks, and VectoIQ Acquisition Corp., a special purpose acquisition company, have agreed to merge. The new company, Nikola Corp, plans to list on the Nasdaq under the ticker symbol “NKLA”, Nikola said Tuesday.
The merger will create a company focused on the development of next- generation smart transportation, it said. The combined company will be valued at £3.3 billion, Nikola said. The transaction will be funded through a combination of VectoIQ’s cash in trust and a £525-million private placement of common stock at £10 per share, it said.
The company will use the proceeds to accelerate its portfolio of battery-electric (BEV) and hydrogen fuel-cell electric vehicles (FCEV). Nikola already has more than 14,000 pre-orders for its vehicles worth £10 billion in potential revenue and two-and-a-half years of production, the company said. Nikola will add Stephen Girsky, current CEO of VectoIQ and former vice-chairman of General Motors Corp., to its board of directors.
Nikola said the merger will also allow the company to break ground on its state-of-the-art manufacturing facility in Coolidge, Ariz., and begin its hydrogen station infrastructure rollout. The company expects to generate revenue by 2021 with the rollout of its BEV truck, followed by FCEV truck sales starting in 2023, it said. “We are on a roll.
You couldn’t ask for better news for the energy and tech industry,” said Trevor Milton, founder and CEO of Nikola. “We believe we have a differentiated business model built on economics, not government subsidies. We now need to double down and speed up the timelines and get to market.”
Girsky said Nikola’s vision of a zero-emission future and ability to execute were key drivers in his company’s decision.
Milton will serve as executive chairman of the combined company.
Mark Russell, who has more than 20 years of experience building and managing companies in the manufacturing industry, will serve as the CEO of Nikola.