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Nikola Corporation (NASDAQ:NKLA), the company championing battery-electric and hydrogen fuel-cell-powered trucks, filed the Form S-8 with the U.S. Securities and Exchange Commission (SEC) just moments ago. Through this endeavor, the company aims to clarify the equity component of its employee benefit plan.
As a refresher, the Form S-8 allows a public company the facility to register securities that it would offer as part of its employee benefit plan. The SEC has mandated this disclosure prior to the actual issuance of such securities. Unlike the Form S-1, Form S-8 is a short-form registration statement that does not include a detailed prospectus of the company.
As per the Form S-8 filed today, Nikola has registered 86.52 million shares for its 2020 Stock Incentive Plan, 2020 Employee Stock Purchase Plan and the Nikola Corporation 2017 Stock Option Plan. A detailed breakdown of the securities is as follows:
Trevor Milton, the executive chairman of Nikola Corporation, had indicated via a tweet on Tuesday that the filing was imminent in an apparent attempt to forestall any knee-jerk reaction in the stock today.
We will file our form S8 tomorrow to register the employee benefit plans. Because we were a spac we had to wait 60 days to file and it was previously disclosed in the S4. We are not raising money, This is for employee stock options and hiring. Just so everyone knows.
— Trevor Milton (@nikolatrevor) August 11, 2020
“[The company has received] a minimum order of 2,500 electrified refuse trucks from Republic Services, expandable up to 5,000. This order is to begin full production deliveries in 2023 with on-road testing likely to begin in early 2022. The refuse trucks are anticipated to carry up to an industry-leading 720kWh of energy storage.”
According to the details revealed by Mr. Milton, the contract is worth an estimated $1 billion to $2 billion, depending on the final order volume. Moreover, Republic Service’s electric trucks will utilize the same powertrain as that currently being employed for Nikola Tre, thereby, producing significant cost savings. Further details can be found in Nikola’s pertinent filing with the SEC where the company notes:
“The electric platform is expected to offer up to 150 miles and 1,200 cans on a single charge, and the refuse trucks are anticipated to carry up to 720kWh of energy storage. The Company expects to begin full production deliveries in 2023 with on-road testing expected to begin in early 2022.”
Nonetheless, investors have not given any pronounced reaction to today's development. As an illustration, Nikola shares are currently down only 0.89 percent in after-hours trading. Year to date, the stock has registered a gain of 314 percent, based on the current price level of $42.81.