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Nicola, the manufacturer of hydrogen and battery-powered trucks, once valued at nearly $30 billion, said Thursday that it is considering a fiscal restructuring.
The company, whose founder was convicted of securities fraud, warned last year that its cash balance fell to less than $200 million and that it had enough liquidity to stay up for another few months.
“Nicola is continuously assessing the financial condition and liquidity required to operate its business,” the spokesperson said. “As part of its review, the company is evaluating a variety of options, including funding as part of a fiscal restructuring.”
Bankruptcy could result in asset sales, restructuring or liquidation. The Arizona-based company has over $350 million in liabilities and leases. Revenue for the first three quarters of 2024 was just $64 million as they struggled to commercialize the technology.
If they formally filed bankruptcy, Nicola raised cash or to several motor vehicle troops released in 2021 in sought court protection from creditors such as Fisker, Arrivals and Roadtown Motors. I participated. Nicola’s current market capitalization is only $63 million.
Nicola opened it to the public in 2020 via Blankchuk Company, aiming to promote pioneer green for long-distance trucks. Founder Trevor Milton hyped the stock on social media, and at one point Nicola was worth more than the legacy car maker Ford.
However, after its market capitalization reached nearly $300 billion, the stock price collapsed when the short-seller Hindenburg investigation accused the company of being a “complicated scam.” It also revealed that the track in Nicola’s promotional video, which was clearly moving under its own power, was rolling downhill instead.
Federal prosecutors have accused Milton of securities and wire fraud against investors misleading Nicola’s technology. Milton was convicted three of the four times in 2022 and sentenced to four years in prison. He remains on bail, pleading for conviction.
The Wall Street Journal was the first to report that Nicola is considering a financial restructuring.
