This morning, Nikola (Nasdaq: NKLA, NKLAW), which was the combination company of VectoIQ Acquisition Corp., announced they will be redeeming all of their public warrants that remain outstanding at 5:00 p.m. New York City time on August 21, 2020 (the “Redemption Date”) and are requiring a cash exercise.
Additionally, the 890,000 private placement warrants that were included in the at-risk units purchased by VectoIQ’s sponsor at IPO are not subject to this redemption. However, if all 23 million Public Warrants exercise at $11.50 per share, Nikola could potentially receive $264.5 million in gross proceeds. This warrant call was not a surprise. Once Nikola’s registration statement for the shares underlying the warrants became effective on Friday evening, investors were anticipating a quick call.
Any public warrants that remain unexercised following 5:00 p.m. New York City time on August 21, 2020 will be void and no longer exercisable, and the holders of those public warrants will be entitled to receive only the redemption price of $0.01 per warrant.