My early Christmas gift to /r/wallstreetbets
From the NKLA earnings report…
tldr: 161 million NKLA shares (held by insiders) will become unrestricted on Dec 1 (Tuesday) – meaning a portion of them will likely be sold on that day. Expect a bunch of market sell orders to show up on Dec 1.
Certain persons and entities holding shares of our common stock initially purchased by VectoIQ’s sponsor, […] agreed to be locked-up for a period of one year following the closing of the Business Combination, subject to early release if the reported last sale price of our common stock equals or exceeds $12.00 per share for any 20 trading days within any 30-trading day period commencing at least 150 days after the closing of the Business Combination, and subject to certain other exceptions[…]. The Registration Rights and Lock-Up Agreement also provides that certain stockholders of Legacy Nikola (collectively, the “New Holders”) will be locked-up for a period of 180 days following the closing of the Business Combination, except for certain entities controlled by Trevor R. Milton and Mark A. Russell, which will be locked-up until December 1, 2020 (up to 16% of which can be transferred prior to such time in connection with pledges of such shares as security or collateral to incur debt for the purpose of acquiring additional shares of our common stock), in each case subject to certain exceptions. In addition, certain stockholders of Legacy Nikola and our executive officers agreed to be locked-up for a period of 180 days following the closing of the Business Combination, subject to certain exceptions, pursuant to Lock-Up Agreements dated June 3, 2020. In November, 2020, members of our board of directors, executive officers, their affiliates and certain entities associated with those individuals voluntarily agreed to extend the lock-up provision on an aggregate of approximately 136,500,000 shares of our common stock, including vested stock options and warrants, through April 30, 2021.
As a result, approximately 161 million shares of our common stock will become eligible for sale beginning on December 1, 2020 upon the expiration of the lock-up agreements described above. Approximately 5 million additional shares of our common stock held by the Original Holders may become eligible for sale beginning on or after December 1, 2020 pursuant to the Registration Rights and Lock-Up Agreement, depending on the price of our common stock during the 30-trading day period commencing on or after November 1, 2020 at the time.
Submitted November 11, 2020 at 12:46AM by EquivalentSelection
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