Nikola has completed the acquisition of California-based electrification specialist Romeo Power. The idea that lays behind such acquisition is to bring battery production in-house, thus making cost reduction possible. We published a post about this operation at the end of August. Now, everything has been set by the two companies.
Nikola acquiring Romeo Power
“We are pleased to complete the acquisition of Romeo and look forward to executing on the opportunities ahead,” said Michael Lohscheller, Nikola’s President. “The acquisition of Romeo will enhance Nikola’s capabilities, allowing us to vertically integrate in an effort to accelerate product development and improve performance for our customers. Today’s milestone further solidifies our commitment to transforming the transportation industry.”
Nikola completed the acquisition of Romeo today through a second-step merger of a wholly-owned subsidiary of Nikola with and into Romeo, in accordance with Section 251(h) of the General Corporation Law of the State of Delaware. Each remaining share of common stock of Romeo not purchased in the exchange offer (other than any shares owned by Nikola, Romeo or any of their respective subsidiaries) was converted into the right to receive the same 0.1186 of a share of Nikola common stock, rounded down to the nearest whole share, subject to reduction for any applicable withholding taxes, paid in the exchange offer. Upon completion of the transaction, Romeo became a wholly-owned subsidiary of Nikola.
Nikola founder Trevor Milton found guilty of fraud
Talking about Nikola, a few days ago Nikola founder and former CEO, Trevor Milton, was found guilty of three out of four counts of fraud in the U.S. Milton was charged with making fraudulent statements to drive up the value of Nikola’s stock. According to Damien Williams, the U.S. Attorney for the Southern District of New York, Milton lied about “nearly all aspects of the business” he founded in 2014 during his time leading the company. Those lies, prosecutors said, were intended to induce investors to bid up the price of Nikola’s stock, as reported by the U.S. press, namely CNBC.