Nikola Announces Plan to Redeem Its Warrants
Electric-semi start-up Nikola (NASDAQ: NKLA) said that it will begin redeeming the 23 million publicly traded warrants issued by VectoIQ Acquisition, the special-purpose acquisition company (SPAC) that merged with Nikola in June.
The warrants in question, which now trade under the ticker "NKLAW," allow owners to buy one share of Nikola common stock from the company at $11.50, well below its recent price.
Under the 2018 agreement that created the warrants, Nikola has the right to redeem the publicly traded warrants if its stock price closes at $18.00 or higher on twenty trading days within any thirty-day period.
Source Fool.com