By Kathryn Hardison
Shares of Nikola Corp. slid to their lowest intraday price in a more than a month after the electric-truck startup said it has begun its exchange offer for Romeo Power Inc.'s shares.
At 1:07 p.m. ET, Nikola shares were down 10% to $5.36, a level last seen on July 15, according to FactSet. Shares are down about 46% for the year.
Nikola, which specializes in zero-emissions transportation and energy infrastructure solutions, said on Aug. 1 that it would buy Romeo Power for $144 million.
Under the agreement, Romeo stockholders would receive 0.1186 of a share of Nikola common stock for each Romeo share, representing an approximate 4.5% pro forma ownership of Nikola.
While some analysts praised Nikola for vertically integrating to safeguard its supply of batteries, DA Davidson analyst Michael Shlisky raised concerns earlier this month that Nikola could struggle to integrate Romeo. Mr. Shlisky cited the company's plan to exit Romeo's current contracts with other customers, which could carry early-termination costs.
Romeo shares fell 7.4% to 62 cents per share, down 83% for the year.
--Will Feuer contributed to this article.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
$(END)$ Dow Jones Newswires
August 30, 2022 13:18 ET (17:18 GMT)
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