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Wednesday, May 27, 2020 10:58:50 AM
My belief is Nikola would be more likely to call for a cash exercise as those additional funds will be needed to manage the cash burn with the anticipated hyper growth. There are other ways to raise funds but this would be the easiest by far.
However...
IF NIKOLA’S PRIMARY CONCERN IS WITH DILUTION of existing shareholders vs a need for additional cash, the underlying stock price would have a major influence on their decision. UNDER THIS SCENARIO... The company is more likely to execute a cashless exercise the closer the stock is trading to the lowest required price to initiate the conversion b/c, they’re able to minimize the impact of dilution... Conversely, the higher the stock price goes, the less likely a cashless exercise will take place b/c, the dilution makes less of an impact.
If you use the cashless exercise formula I provided...
NKLA trading at $20 results in a cashless exercise of 425 shs (~60% less dilutive)
NKLA trading at $50 results in a cashless exercise of 770 shs (~25% less dilutive)
NKLA trading at $80 results in a cashless exercise of 856 shs (~15% less dilutive)
As you can see, the impact of a cashless exercise is less effective on dilution as the share price increases.
I hope this helps...
Recent NKLA News
- Nikola Corporation Announces Date for Third Quarter 2024 Results and Webcast and Q&A Platform for Shareholders • PR Newswire (US) • 10/03/2024 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/02/2024 12:08:36 PM
- NIKOLA RECORDS SALES OF 88 HYDROGEN-POWERED CLASS 8 TRUCKS FOR NORTH AMERICAN CUSTOMERS IN Q3 2024; 200 TOTAL SOLD THIS YEAR • PR Newswire (US) • 10/02/2024 12:05:00 PM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 08:15:06 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/04/2024 07:09:29 PM
- TOM SCHMITT NAMED CHIEF COMMERCIAL OFFICER OF NIKOLA CORPORATION • PR Newswire (US) • 08/27/2024 08:05:00 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/19/2024 08:51:02 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/19/2024 08:45:03 PM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 08/19/2024 08:29:29 PM
- Form S-3 - Registration statement under Securities Act of 1933 • Edgar (US Regulatory) • 08/19/2024 01:27:09 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/19/2024 01:17:10 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/19/2024 01:16:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/19/2024 01:12:30 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 08/19/2024 01:11:11 PM
- NIKOLA STRENGTHENS SOUTHERN CALIFORNIA HYDROGEN INFRASTRUCTURE WITH NEW HYLA STATION AT TOM'S TRUCK CENTER IN LOS ANGELES COUNTY • PR Newswire (US) • 08/12/2024 12:05:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 08/09/2024 08:09:11 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/09/2024 08:04:59 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/09/2024 08:04:48 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/09/2024 03:28:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/09/2024 01:10:52 PM
- Nikola Corporation Reports Second Quarter 2024 Results • PR Newswire (US) • 08/09/2024 01:05:00 PM
- US Futures Climb Following Thursday’s Rally, Oil Prices Steady • IH Market News • 08/09/2024 09:50:19 AM
- NIKOLA AND ITD INDUSTRIES LAUNCH FIRST HYDROGEN STATION IN ONTARIO • PR Newswire (Canada) • 07/30/2024 10:30:00 PM
- NIKOLA AND ITD INDUSTRIES LAUNCH FIRST HYDROGEN STATION IN ONTARIO • PR Newswire (US) • 07/30/2024 10:30:00 PM
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