Nikola NKLA tender supply Romeo Energy RMO acquisition accomplished

Electrical heavy truck maker Nikola mentioned Thursday that its deliberate acquisition of battery-pack maker Romeo Energy will now proceed, after Romeo Energy shareholders agreed to tender simply over half of the corporate’s excellent shares.

In August, Nikola mentioned it had agreed to amass Romeo Energy, a California-based maker of battery modules that has been struggling financially, for $144 million in inventory. However the deal was contingent on a young supply to Romeo shareholders: Buyers needed to “tender,” or change, at the least half of Romeo’s shares excellent by midnight Wednesday for the deal to proceed.

Nikola mentioned that 93.16 million Romeo shares, representing about 50.1% of the corporate’s whole shares excellent, had been tendered by the deadline – simply sufficient to finish the deal.

The remaining shares of Romeo Energy will now be “canceled and transformed” to shares of Nikola, with Romeo shareholders receiving 0.1186 of a Nikola share for every share of Romeo they maintain, Nikola mentioned.

Romeo Energy focuses on constructing battery modules and packs for giant electrical business autos, utilizing lithium-ion battery cells made by different corporations. Nikola, which expects to ship between 300 and 500 of its electrical semitrucks by year-end, is Romeo’s largest buyer.

Nikola mentioned in August that it had agreed to supply Romeo with $35 million in interim funding to proceed its operations till the merger is accomplished. The truck maker has mentioned that bringing Romeo’s operations in-house may reserve it as much as $350 million over the following 4 years.

Shares of the corporate closed up about 3.3% on Thursday.

Nikola will report its third-quarter outcomes earlier than the U.S. markets open on Nov. 3.