In June, aspiring hydrogen truck maker Nicola merged into a special-purpose acquisition company to become a publicly traded company. That transaction includes a 180-day lockup for company insiders, designed to prevent unsuspecting investors from dumping their shares in the first few days of trading.
Today is the first day that insiders can sell their shares, and Nicola’s share price is down 15 percent. It’s on top 26 percent reduction yesterday Nicola announced that she was canceling her badger pickup truck.
Nicola’s stock is now about 80 percent below its post-IPO high in June and then 65 percent below September announcement Deals with GM. Failing to close the deal, which was announced yesterday, Nicola was forced to leave the badger.
According to CNBC, Most of the shares unlocked on Tuesday belong to Trevor Milton, founder and former executive chairman, who owns more than 90 million Nikola shares. Milton was forced to resign from Nikola in September after it was revealed that he had lied about the functionality of the company’s first product, the Nicola One. In reality, the truck never works; A promotional video showing the truck “in motion” actually showed it Rolling down a hill.
A Milton spokesman declined to comment to CNBC on whether he had sold any of his shares. But it is clear that trade in Nicola was unusually heavy on Tuesday morning. As I write this around 3pm on Tuesday, more than 60 million shares have changed hands. That compares to about 20 million shares traded on a typical day in November – although that’s less than the 93 million shares that changed hands on Monday.
Coffee enthusiast. Travel scholar. Infuriatingly humble zombie fanatic. Thinker. Professional twitter evangelist.