Nikola Corporation (NKLA)

[tdtcal]

What?

If there is a R/S then they will also authorize a decrease in A/S to 1B from 1.6B.

BUT:

They are doing that decrease in A/S AFTER the R/S.

So, a decrease in everyone’s shares by 10/1 to 30/1 as well as total A/S.

Then there will be an increase in the A/S back to the “reduced” A/S of 1B.

Share holders percentage of Nikola is reduced greatly.

Then add in the 100+M shares out of the “reduced” new 1B shares for the Nikola officers.

At this point Nikola sells what’s left of the “reduced” new shares which further dilutes share holders portion of Nikola.
Because they will need cash for a bit longer.

So no, all things being equal, a R/S does not dilute, per se. Subsequently selling “new” shares does and it further magnifies the existing shareholders losses.

Of course management covered themselves when they added authorizing the 100M+ shares for themselves, after any new A/S.

Of course this might not occur.