Nikola said a lot of stuff during its legendary life, including stuff that led to fraud charges that it settled with the SEC last December for $125 million. “Integrated commercial vehicle electrification platform is expected to lead to manufacturing excellence and expected annual cost savings of up to $350 million by 2026 reduce non-cell related battery pack costs by 30-40% by the end of 2023,” Nikola said today.

In other words, the collapsing battery-pack maker is part of Nikola’s very reliable supply chain. Both Nikola and Romeo have been stars in my Imploded Stocks column.Īs part of the deal, Nikola agreed to provide $35 million in “liquidity support” to Romeo through the closing of the acquisition in order to “facilitate continued operations.” This $0.74 a share, a 34% premium over Romeo’s July 29 closing price, represented an equity value of $144 million, Nikola said. Romeo’s shares closed at $0.70 today upon the news. The purchase price announced this morning was $0.74 per share. In June, it received a delisting notice from the New York Stock Exchange. In its Q1 earnings report – $11 million in revenues generating a net loss of $81 million – it had warned that it might not be able to continue as a going concern. Legendary electric truck maker Nikola, which went public in June 2020 via merger with a SPAC – legendary for all the wrong reasons, such as fraud charges that it settled with the SEC for $125 million last December and a stock that has collapsed by 92% from its hype-and-hoopla high – announced today that it has made a deal to acquire battery-pack maker Romeo Power, which had gone public via merger with a SPAC in January, 2021. Nikola, which reported $0 revenues from truck sales, is desperately trying to raise cash. Romeo, battery-pack supplier to Nikola, reached the end of its runway.

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