Indicted Nikola Corp. founder Trevor Milton is continuing to reduce his stake in the company, selling 7 million more shares over the past week, according to a Securities and Exchange Commission filing on Friday.
Sales over the three days brought nearly $77 million on top of $71.5 million for another 7 million shares sold six days before his July 29 indictment on federal fraud charges.
The government alleges Milton tried to enrich himself by inflating the value of company shares through false and misleading claims about the startup’s technological accomplishments and prowess.
The large selloffs Tuesday through Thursday depressed the share price even as Nikola (NASDAQ: NKLA) announced an expansion in the dealer network for the company’s Class 8 battery-electric daycabs and received a $2 million Department of Energy grant to develop hydrogen filling stations.
After opening at $11.52 on Tuesday, the share price closed Friday at $9.53, just 17 cents above its 52-week low.
Milton now owns 63.3 million shares, about 15.8% of outstanding shares. He is still Nikola’s largest shareholder, but the gap between Milton and CEO Mark Russell continues to shrink. Russell owns 12.3 million shares of the company.
Before this week, the stakes owned by Milton, Russell, directors and senior leaders totaled more than 50% of outstanding shares. Nikola said in an SEC filing that concentration of ownership could cause new investors to avoid purchases because they would have little influence over company decisions.
Additional shares are being issued as part of a $300 million line of credit, which will increase the number of outstanding shares to about 418 million by year end, diluting the value of existing shares as they are sold to raise cash.
Related articles:
Milton’s sell-off: Indicted Nikola founders dumps 7M shares, transfers 600,000 others
Nikola moves on from Trevor Milton to tackle supply chain challenges
The case against Nikola’s Trevor Milton: ‘Lied about nearly every aspect’
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now