Nikola Founder Urges EV Company's Investors To Exercise Their Warrants

Nikola Corporation (NASDAQ: NKLA) CEO Trevor Milton has been reaching out to the company's investors via social media platforms, urging them to exercise their warrants. In a tweet, Milton also shared updates on the company's cash position and proceeds generated from the conversion.What Happened: The zero-emission concept vehicles designer announced the redemption of its outstanding warrants in July.The warrants which were issued in May 2018, would entitle holders to purchase the company's common stock at an exercise price of $11.50 per share till Aug 21, 2020.The warrants held under broker custody have a two day grace period and can be exercised by Aug 25. All unexercised warrants that remain outstanding after the redemption date would be void and holders would be entitled to receive a redemption price of $0.01 per warrant.Why It Matters: Milton claimed that out of the 23 million warrants, over 98% have been exercised, which includes 279,000 warrants in broker custody which would be settled on Tuesday, Aug 25.Milton also urged holders to benefit from the two-day broker protection grace period. All warrants exercised in this period will be finally settled on Aug 25."There's a two-day grace period called a brokerage protection period," Milton said in one Instagram post, as earlier reported by Bloomberg. "You need to call your broker right now."The company has generated total proceeds of $263.5 million. At the end of the second quarter, Nikola held a cash balance of over $700 million, including $8.9 million of restricted cash, according to Bloomberg. Price Movement: Nikola shares traded 0.2% higher at $38.77 in the pre-market session Tuesday.Photo courtesy: Nikola Corp.See more from Benzinga * iRobot Launches AI-Powered 'Genius' To Boost Roomba, Braava Functionalities * Cloud Software Startup Snowflake Files For IPO * Apple Stock Split Causes Dow Jones Industrial Average Shuffle; Salesforce, Amgen, Honeywell To Make Entry(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.