A new agreement that provides General Motors` hydrogen fuel cell technology is closer than the September partnership. Hydrogen electric fuel cell maker Nikola Motor Corp. has reached a definitive merger agreement with VectoIQ, a listed utility acquisition company. VectoIQ is also known for its status as a publicly traded company listed on the NASDAQ under the VTIQ brand. The combined company that will retain the Nikola Corporation name is classified as NKLA. The pro forma enterprise value of the merger is $3.3 billion. The stock recorded a fourth straight session of declines. The stock freeze ended on Monday, 180 days after the startup merged in June with the acquisition of VectoIQ and the IPO of The Nasdaq. Following the completion of the merger, the nasdaq shareholders of Nikola Motor Corp. (VTIQ) will automatically become shareholders of the publicly traded Nikola Corporation (NKLA), the company said. Daimler, Toyota and other companies are also working on fuel cell trucks, but Nikolas` plan has a twist as it also wants to set up a network of hydrogen gas stations. The company`s plan to create a comprehensive service for hydrogen trucks has been compelling to many investors. Nikola went public earlier this year by merging with a goal acquisition company – an increasingly popular type of business that has nothing but a stock market listing and a pile of cash from investors hoping to acquire a promising business.
The $3.3 billion merger will list Nikola on the NASDAQ and include a GM veteran on its board of directors. The new agreement gives Nikola access to the fuel cell technology that G.M developed but never marketed. Cells use hydrogen to generate electricity, and some experts believe they are a better way to eliminate greenhouse gas emissions from heavy trucks than batteries that weigh heavily and can take hours to recharge them. Nikola`s shares were sold on Monday after GM abandoned its deal, which included a stake in the start-up and plans to build Nikola`s “Badger” electric pickup truck. It replaced them with a non-binding agreement in which GM Nikola will supply its fuel cell system. Nikola Corporation, which specializes in battery and hydrogen electric trucks and Powersport vehicles, announced on March 3 the merger with VectoIQ, a goal acquisition company founded by former GM Vice President Steve Girsky.