Hanwha Group has made a partial exit from Nikola Corporation, one of the most controversial firms in the US hydrogen sector.
Green Nikola Holdings LLC, a US entity set up by Hanwha Group for investment in Nikola, said on July 1 that it sold 2.9 million shares of Nikola out of 22.13 million that it owned.
The transaction has lowered Hanwha Group’s stake in Nikola from 5.60% to 4.86%. Hanwha Group had invested a total of $100 million in November 2018 for a 6.13% stake.
Earlier this year in March, Green Nikola Holdings announced that it will be selling up to 50% of its Nikola stocks, or about 11 million shares, between June 9 and Dec. 10 this year.
“The sellout of 2.9 million shares this time is part of our pre-announced plan to sell up to 50% of the 22 million shares that we owned. But we will keep our strategic partnership with Nikola,” said Hanwha Group.
US STOCK MARKET REACTIONS TO NIKOLA CONTROVERSY
Shortly after its IPO on Nasdaq in June last year with an initial opening price of $37.55, Nikola’s stock price reached beyond $70.
But in September of the same year, Nikola faced fraud claims put forward by the short-seller Hindenburg Research, which said that the company was an “intricate fraud” built on an “ocean of lies.”
Nikola founder and CEO stepped down from his positions last year amid fraud allegations. The controversial company’s stock price plunged to around $10 a share in April this year and has been trading around $18 this week.
Hanwha said its 2.9 million shares were sold at an average of $18.50. Hanwha Group purchased Nikola shares at an average of $4.50 in 2018 and thus raised $40.6 million this time.
Hanwha added that the raised funds will be used for investments in the group’s hydrogen and other renewable energy businesses.
