Media Coverage
Source: Law360, The Deal
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
06.08.20
Nikola Corporation, a global leader in zero-emissions heavy duty trucks and hydrogen infrastructure, and VectoIQ Acquisition Corp., a publicly traded special purpose acquisition company, announced the completion of its previously announced business combination that the two companies have entered into a definitive agreement to create a company focused on the development of next generation smart transportation. With the transaction closing on June 3, the combined company is now named Nikola Corporation and is on the NASDAQ under the new ticker symbol “NKLA.”
Nikola is represented by a team of Pillsbury lawyers in Silicon Valley, which included Stanley Pierson, Omar Bailony, Gabriella Lombardi, Jarrod Murphy, Julie Park, Lana Persaud, C. Brian Wainwright, Cindy Schlaefer, Colleen Lamarre and George Willman.
"Nikola is thrilled to complete the Nasdaq listing and be part of the ESG investment world. This is a significant endorsement in fuel-cell and battery-electric technology. Since Nikola launched its first fuel-cell semi-truck, you have seen the world rally behind hydrogen and follow our lead. What was once considered the fuel of the future is now accepted as today's solution," said Nikola's Founder and Executive Chairman Trevor Milton. "With our Nikola IVECO joint venture and over $10 billion in pre-order reservations, Nikola is positioned to be a wonderful story of how one company can literally change the world."
The transaction reflects an implied enterprise value at closing of $3.3 billion. Cash proceeds raised in the transaction, which will primarily be used to fund operations, support growth and for other general corporate purposes, will be funded through a combination of VectoIQ’s cash in trust and a $525 million private placement of common stock at $10.00 per share led by institutional investors including Fidelity Management & Research Company, ValueAct Spring Fund and P. Schoenfeld Asset Management LP. Current Nikola stockholders will remain majority owners of the combined company at closing.
More than $10 billion in pre-order leases to date and the joint venture with European industrial vehicle manufacturer IVECO make Nikola a formidable competitor to other OEMs (original equipment manufacturers). Nikola’s business model uniquely supplies both the truck and hydrogen fueling infrastructure, solving the fleets’ concerns of where to refuel with green hydrogen at competitive pricing to diesel. The transaction proceeds will accelerate production, allow Nikola to break ground on its state-of-the-art manufacturing facility in Coolidge, Ariz., and begin its hydrogen station infrastructure roll out. The company expects to generate revenue by 2021 with the roll out of its BEV truck, followed by FCEV truck sales starting in 2023 and the initial build out of hydrogen fueling stations to serve Nikola customers’ fleets, such as Anheuser-Busch.