Business & Investment

Trevor Milton rakes for $ 49 million on sale of 3.5 million Nikola shares

Former Nicola Co., Ltd. (NASDAQ: NKLA) Chairman and Founder Trevor Milton Sell ​​3.5 million shares Last week at a startup electric truck company.

Milton has been the subject of a federal investigation into allegations of fraud alleged by short-sellers who pushed the company’s stock price to the crater last fall. Since its public debut in June 2020, it has been trading as a teenager from a high of over $ 90 per share.

Milton accounts for approximately 20.1% of the outstanding shares and continues to be the company’s largest shareholder. Based on Thursday’s closing price of $ 13.91, his stock is worth just under $ 1.1 billion.Milton was listed as One of the 12 youngest millionaires It was on the Forbes 400 list last September. At that time, his personal value was $ 3.3 billion.

Sale of Milton and intention of Korean solar panel maker Hanwha sells half of 22.1 million sharesPlease come as Nicola plans to sell the new shares. The new shares in the next 12-18 months will probably dilute the company’s 391.5 million current shares.

Trying to move on

Nicola is trying to overcome Milton’s glorious leadership. The company admits that Milton made inaccurate statements about Nicola’s technological capabilities and achievements.Milton resigned last September Report by Hindenburg Research Nicola claimed it was a “sea of ​​lies.”

Milton has been quarantined since his resignation. Fallout from the report has ended its partnership with General Motors (NYSE: GM). The automaker planned to acquire an 11% stake in Nicola to manufacture badger electric pickup trucks.

He hasn’t spoken publicly since his departure. The Federal Attorney for the Southern District of New York and the Securities and Exchange Commission (SEC) are investigating Milton and other Nicola executives. There are no civil or criminal charges.

Nicola has spent more than $ 27 million to protect Milton and itself, according to the latest quarterly report to the SEC. In the filings, Nicola emphasized nine statements stating that the internal investigations Milton found were totally or partially inaccurate.

In a recent Freight Waves interview, CEO Mark Russell said, “I hope that by publishing in plain language, people can place it there and move on.”

Refocused priorities

Nikola refocuses on specific timelines for battery electric trucks and fuel cell electric trucks to produce hydrogen in a profitable way. Nicola removed the badger from the plan after GM’s contract collapsed. In the future, we may purchase GM’s Hydrotec fuel cells.

Nicola was financially responsible for closing its early power sports business, including battery-powered off-road vehicles and ships. You can dispose of the military version of the 4-seater off-road EV.

“These things are no longer distracting us,” Russell said. “They were never a priority.”

Second major partner cuts shares as Nicola plans to sell $ 100 million in new shares

News analysis: Nicola torturer Hindenberg Research fires at Lordstown Motors

No partner, no problem: Nicola may run hydrogen station alone

Click here for more Freight Waves articles by Alan Adler.

Trevor Milton rakes for $ 49 million on sale of 3.5 million Nikola shares Trevor Milton rakes for $ 49 million on sale of 3.5 million Nikola shares

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