Nikola turns positive on extension of exchange offer to acquire Romeo Power

Sep. 27, 2022 9:47 AM ETNikola Corporation (NKLA)By: Preeti Singh, SA News Editor2 Comments

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  • Nikola (NASDAQ:NKLA) has extended its exchange offer to purchase all outstanding shares of Romeo Power (NYSE:RMO) common stock until the end of Oct 12, 2022 from Sep 26 previously.
  • The companies entered into a definitive agreement for this all-stock transaction on August 1, 2022, pursuant to which Romeo (RMO) stockholders will receive 0.1186 of a share of Nikola (NKLA) common stock for each Romeo share, representing an approximate 4.5% pro forma ownership of Nikola.
  • As of midnight on Sep 26, ~70M Romeo (RMO) shares had been validly tendered and received, and not validly withdrawn, pursuant to the offer, representing ~37.65% of outstanding shares of Romeo common stock. For the offer to be completed, a minimum of 50.1% of outstanding Romeo common stock must be validly tendered.
  • The new deadline to tender shares is midnight at the end of Oct 12, 2022.
  • Shares of both Nikola (NKLA) and Romeo Power (RMO) were up over 4% at 9.45 AM ET.

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