On the risk of delisting of ordinary shares of Nikola Corporation (NKLA)

The International Trading System Limited (ITS) informs of the delisting risk in respect of ordinary shares of Nikola Corporation (ISIN US6541103031, Shares) from The Nasdaq Stock Market LLC (Nasdaq).

Information on delisting risk of ordinary shares by Nasdaq

On February 19, 2025 Nikola Corporation (the Company) submitted a Current report on Form 8-K to The United States Securities and Exchange Commission. According to the report, on February 19, 2025 the Company and certain of its subsidiaries (the Debtors) filed voluntary petitions for relief (the Bankruptcy Petitions) under chapter 11 of Title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court). The Debtors have also filed a motion seeking authorization to pursue a structured sale of their assets pursuant to a competitive auction and sale process under Section 363 of the Bankruptcy Code. 

The Company has engaged Houlihan Lokey Capital, Inc. to advise on its strategic options, including a potential sale of all, or a portion of the Debtors’ assets in connection with the Bankruptcy Petitions. Any such sale(s) would be subject to review and approval by the Bankruptcy Court and compliance with court-approved bidding procedures. The Company cannot be certain that the Company’s securityholders will receive any payment or other distribution on account of their shares following such sales.

The Company also made a cautionary note regarding trading in the Company’s common stock, stating that trading during the pendency of the chapter 11 case is highly speculative and poses substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the Company’s securities in the Bankruptcy Petitions. The Company expects that its securityholders could experience a significant or complete loss on their investment, depending on the outcome of the Bankruptcy Petitions.

Information regarding possible actions to be taken by ITS

ITS will publish separate notices on the procedures undertaken by ITS Ltd. outlining how trading in these qualified investments will be carried out.

If Nasdaq suspends trading in the Company’s ordinary shares, ITS will prohibit submission of orders and will restrict ability to conclude agreements in respect of the Company’s ordinary shares. If the Company’s ordinary shares are delisted from Nasdaq, ITS will terminate trading in the Company’s ordinary shares. However, in case the Company’s ordinary shares become listed, or admitted to trading on another Recognised Trading Venue, ITS will consider but does not guarantee continuation of trading in the Company’s ordinary shares.