Big Nikola Investor Sells Large Blocks of Stock

4 weeks ago 9

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Hanwha, an aboriginal capitalist successful alternative-fuel motortruck shaper Nikola, said successful March it would merchantability shares. It didn’t merchantability immoderate Nikola shares until June, aft the banal rallied.

Courtesy of Nikola

Nikola banal is underperforming the marketplace truthful acold this year, and 1 of the biggest investors successful the shaper of alternative-fuel trucks sold ample blocks of shares done automated transactions.

Nikola (ticker: NKLA) banal has added 7.7% twelvemonth to date, hampered by selling unit past week, compared with the 15.9% emergence successful the S&P 500 index. The shaper of electrical and hydrogen fuel-cell powered trucks reported a smaller-than-expected first-quarter loss successful May, but Wall Street inactive disquieted the start-up needed much capital. Nikola completed immoderate restatements up of the report. A spring slump saw the stock terms dip beneath wherever Nikola became a publically traded entity done a special-purpose acquisition institution past year.

South Korean concern institution Hanwha, an aboriginal Nikola investor, said successful March that a Hanwha subsidiary would merchantability fractional its holdings of 22,130,385 Nikola shares, a 5.6% stake. Hanwha authorized Morgan Stanley to merchantability a maximum of 11,065,190 Nikola shares done a alleged Rule 10b5-1(c) plan. Such a program automatically executes trades erstwhile definite parameters preset by the seller, including terms and volume, are met. The program expires either Dec. 10 oregon erstwhile the maximum fig of shares are sold, whichever is first.


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Although the program was acceptable successful March, it didn’t execute immoderate income until June, perchance indicating that Hanwha acceptable the program to merchantability astatine prices materially supra the outpouring slump. Nikola banal rallied successful the adjacent fewer months.

Hanwha’s program sold 2.9 cardinal shares June 9-28 for a full of $53.7 million, a per-share mean terms of $18.49—33.1% supra wherever Nikola banal ended March. After the sales, Hanwha owned 19.2 cardinal Nikola shares, a involvement of 4.9% arsenic of June 29.

Hanwha didn’t respond to a petition for comment.

Now that Hanwha’s involvement successful Nikola has fallen nether the 5% threshold, Hanwha is nary longer obligated to disclose stock sales. It could merchantability the full Nikola involvement astatine immoderate constituent without further regulatory notice.

Write to Ed Lin astatine ed.lin@barrons.com and travel @BarronsEdLin.

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