NIKOLA REVERSE SPLIT
On June 20, 2024, Nikola Corporation (the “Company” or “Nikola”) announced that its Board of Directors (the “Board”) unanimously approved a reverse stock split of the Company’s common stock at a ratio of 1-for-30. The reverse stock split is expected to take effect following the close of business on June 24, 2024 (the “Effective Date”), and the Company’s common stock is expected to begin trading on a post-reverse stock split basis beginning on June 25, 2024. Additional information relating to the reverse stock split, including a disclaimer about any forward-looking statements, can be found in the Company’s Current Report on Form 8-K filed on June 20, 2024, and linked here.
REVERSE SPLIT FAQS
A reverse stock split exchanges a fixed number of existing shares for a smaller number of shares, resulting in the new shares having a higher price per share.
At a ratio of 1-for-30, every 30 shares of Nikola’s common stock will automatically convert into one share of common stock and the stock price will initially increase proportionately.
The effective date for the reverse stock split is June 24, 2024, at 4:01 p.m., Eastern Standard Time. To effect the reverse stock split, we have filed an amendment to our Certificate of Incorporation with the Secretary of State of the State of Delaware reflecting the reverse stock split of our issued common stock.We expect our common stock to begin trading on the Nasdaq Global Select Market on a split-adjusted basis when the market opens on June 25, 2024.
A fractional share is a portion of an equity stock that is less than one full share. No fractional shares will be issued in connection with the reverse stock split; instead, stockholders that would hold fractional shares as a result of the reverse stock split are entitled to receive a cash payment in lieu of such fractional shares.
For example, if you held 30 shares before the reverse stock split, you would hold one share after the reverse stock split becomes effective. If you held 32 shares before the reverse stock split, you would hold one share after the reverse stock split becomes effective and receive a cash payment in lieu of the two pre-reverse stock split shares that will not convert into a fractional share.
Cash in lieu of fractional shares is a type of payment where investors get cash instead of a fractional share or a partial share of a stock. If the reverse stock split will result in your owning a fractional share, you will be paid cash in lieu of your fractional share through your broker, bank or other nominee, which will be equal to your proportionate interest in the proceeds, net of certain costs associated with such sale, from the aggregation and sale in one or more transactions of the fractional shares by our transfer agent; settlement times will vary according to your broker, bank or other nominee. Please note that Nikola does not control or have visibility into when you will receive cash in lieu of fractional shares if you hold your Nikola stock in street name. Please contact your broker, bank or nominee for information regarding status.
No – Nikola’s common stock will continue to trade under the symbol “NKLA”. There will be a new CUSIP for the common stock following the reverse stock split.
The reverse stock split is intended to be tax-free for U.S. federal income tax purposes. U.S. stockholders generally should not recognize a gain or loss from the reverse stock split, except in those instances where cash payments were provided in lieu of fractional shares, which may be taxable.
Stockholders are advised to consult their own financial/tax advisors with respect to the U.S. federal, state, and local and non-U.S. tax consequences of the reverse stock split.
If you are a beneficial holder and have questions about the reverse stock split, please contact your broker, bank or other nominee.
Stock
Nikola’s stock is publicly traded on the NASDAQ under the ticker symbol NKLA. To purchase shares in Nikola you can do so through your brokerage firm.