(Reuters) – Electric commercial truck maker Nikola Corp NKLA.O of Phoenix, Arizona, tried unsuccessfully to raise $1 billion in the private markets and only turned to a merger with a so-called blank-check company to go public as a way to raise the needed funds, its chief financial officer said.
Nikola quickly raised a $250 million commitment from lead investor CNH International (CNHI.MI) last summer, but market concerns about inflated valuations for some companies led the startup to consider an initial public offering before VectoIQ Acquisition Corp approached in late November, Kim Brady told Reuters this week.
Source: Reuters – Electric carmakers seek out blank-check firms for funding as virus spooks private markets