Nikola Corporation announced that institutional investor Antara Capital had agreed to a $200M investment in the company, according to a press release by Nikola on Monday.
The institutional investor made the investment through the purchase of convertible senior notes that are due in 2026 and will bear the interest at a rate of 8.00% when paid in cash or at a rate of 11% via the issuance of extra notes at NKLA’s choice.
The notes will be convertible at an initial conversion price to be set prior to closing. The initial conversion price will account for a 30% premium to the lower of Nikola’s volume-weighted average price over a pre-determined period.
Mark Russell CEO Nikola stated that the company is at an inflection point as it observes customer momentum improving.
Nikola plans to use the proceeds from the sale of the notes with its other liquidity sources for business expansion in the form of expanding truck manufacturing tooling setup.