"Flood of new and cheap shares sink Nikola stock" (NKLA)

PIPE's into a blind pool. This is like a re-run of the Mafia on Wall Street in the '90's.
In pre-market action the stock is down $9.07 (-18.57%) at $39.77.
Now all we need are some death-spiral convertibles and  "Macarena" blasting everywhere you turn.

From FreightWaves, Friday July 17:

Electric truck startup stock slips below $40 after trading above $90 six weeks ago

Holders of warrants for new stock and early investors who bought discounted shares in electric truck startup Nikola Corp. (NASDAQ: NKLA) poised to head for the exits after trading hours on Friday.

In a prospectus filed with the U.S. Securities and Exchange Commission, Nikola said it would receive about $274 million from the sale of 23 million new shares. Those shares will be added to the current 361 million shares.

But Nikola gets nothing from owners who purchased 53 million shares in VectoIQ. The special purpose acquisition company (SPAC) brought Nikola public in a reverse merger on June 2. Investors, including mutual fund giant Fidelity, bought shares at $10 each in a private investment in public equity (PIPE) that raised $525 million.

Preparing to leave the building
Fidelity registered to sell nearly 18 million shares spread across 17 of its mutual funds.The Central Bank of Norway registered 10 million shares for sale and the Value Act Spring Master Fund put up 5 million of its nearly 11.7 million shares. Blackrock Inc. registered 500,000 shares and exercised about 62,000 warrants for new shares.

Nikola received the PIPE funds and $230 million raised by VectoIQ in its own initial public offering in 2018. VectoIQ looked at more than 100 clean transportation companies before settling on Nikola as its merger partner....

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