As transportation and electricity startups struggle to raise capital, they are increasingly asking shareholders to increase the number of authorized shares. The thinking goes that owning more shares increases the flexibility to sell them outright, use them to back secured debt or perform a host of other financial engineering moves.
In blackjack, this move pays off with a good hand – 18 or higher – 53.8% of the time. The chance of getting to 21 is 30.4%.
For the companies I’ve tried, results are yet to come. Nicola raised her authorized stake count to 1.6 billion from 800 million on August 3. He. She Immediately increase the number of shares It will be sold at a 2.5% discount to Citigroup. The bank already has an arrangement in the market.
The new cap on the market equals $600 million. That’s the amount Nikola says he needs to launch fuel cell trucks and continue to invest in hydrogen distribution.
cash poor Workhorse Group requests shareholders to increase its authorized shares to 450,000 from 250,000 in a vote on August 28th. Either way, the electric truck makers have little money left to expand their business and no other obvious steps.
Extra posts don’t always help
Electric bus and battery maker Proterra Inc. doubled its shares to 1 billion from 500 million on June 23. And she filed for Chapter 11 bankruptcy on Monday. Even if Proterra appears with an approved reorganization plan, common stockholders face elimination. They are at the back of the line between the creditors.
Proterra is not delisted from the Nasdaq Stock Exchange next Thursday. The bankruptcy court allows Proterra to continue operating with the commencement of Chapter 11 proceedings.
Another type of split in blackjack – the reverse split – is another popular move. Companies facing delisting from the NASDAQ because their stock price has fallen below $1 for 30 consecutive days, give it a try. In a reverse split company, you trade one new share for several existing shares. This artificially supports the share price without affecting the underlying book value.
Both the stock license increase and reverse splits speak to desperation. Increasing the number of authorized shares dilutes the shares held by existing investors.
This dilution helps explain why Nicola has had to chase agents to pass on her authorized stake increases in each of the past two years. a Change regulation in Delaware This month lowered the threshold for agents needed to pass this year’s proposal.
Workhorse still needs one vote in excess of 50% of all of its outstanding shares to pass its proposal. She has a proxy solicitor chasing after shareholders – most of whom are individuals rather than institutions. Investment banks and the like usually vote on large blocks of shares.
“We’ve been very strategic in how we clean up our balance sheet and fund our efforts thus far,” Workhorse CEO Rick Dautch told analysts on the company’s second-quarter earnings call Wednesday. “The financing options we are considering would require us to issue more shares.”
Do you want a taxi with this body?
After supplying the Ford Motor Co. Catering to customers like Purolator, Bimbo Bakeries, and Cintas, Motiv Power Systems offers cabs with chassis.
Motev said adding the cab could triple its market share. Expansion across Class 5-6 will include box trucks that support warehouse loading at curb height; buses capable of carrying 18-30 passengers; Flatbed refrigerated box trucks. Lifting, bulldozer, work trucks and more.
Motiv will compete with legacy companies like Shyft Group, which offers terrestrial electric vehicles through Blue Arc commercial, and Daimler Truck, which will bring its Mitsubishi Fuso-based 4-5 Series eCanter back to the United States in the fourth quarter. under the name of Reason.
The Argo Series mid-duty cab was developed with customers who have logged millions of miles driven by electric vehicles in the real world. Although it doesn’t sound like a lot, Motiv has put 180 EVs of 2 tons or more on the road in the past 14 years.
“The Class 5 MD (medium duty) space isn’t crowded, at least right now,” Motiv CEO Tim Krauskopf told me in an email. “The main question is who’s shipping the trucks in what quantifiable quantity, and Motif has a longer run than any of them.”
The Argo series arrives in late 2024
The Argo Series arrives in the market in late 2024 targeting Class 4-6 box trucks, vans, shuttle buses, refrigerated vehicles, professional vehicles and other specialties. Bodybuilders Morgan Olson, Carrier Transicold and Rockport Commercial Vehicles make their own. Next generation powertrain from Motiv. Motiv claims it’s capable of a range of 150 to 200 miles using a lithium iron phosphate battery from startup Our Next Energy.
“Many have joined the electric vehicle commercial space by jumping head first and starting with ultra-modern, flashy designs that don’t always deliver practical driving experiences,” said Jim Castellas, Motiv founder and chief technology officer. New release.
Krauskopf added, “There are more Series 3 cars out there. But few other companies have more than 100 fully operational Series 4 or higher.”
The Argo cab’s composite body includes a windshield with integrated heat to provide defrosting power. Its seats are heated by a specially designed airflow, and shorter shock absorbers to the rear of the cab provide greater maneuverability. The weight savings from the vehicles are offset by the weight of the battery allowing for more payload.
The Chassis Cab is available for pre-order and will be on the road in late 2024. The Argo vehicles will be built in Detroit. They qualify for the Inflation Reduction Act tax credit and qualify for certain incentive programs. Prices have not been announced.
Motif has stayed in the game in part because it’s compatible with California’s generous incentive programs. Private company Exploring a reverse merger during the SPAC craze. But she did not find a partner. Latest announced fundraiser for Motiv – $20 million followed by $15 million – came in 2020.
“Motiv has very strong backing, and the market needs both legacy and new blood to supply all the vehicles needed for the dramatic and comprehensive fleet transitions to zero emissions,” said Krauskopf. “As a private company, we have not announced specific comprehensive support, but we continue to be supported by our existing investors.”
TuSimple is falling behind again
TuSimple Holdings Securities and Exchange Commission This week it will not submit the required financial data for the second quarter on time. This independent truck developer sent a telegram in June when it worked Deal with Nasdaq to submit all delayed financial data by Sept. 30. So far, she has Submit a report.
If it misses this date, the Nasdaq will likely delist TuSimple (NASDAQ:TSP) from the exchange because it has already delayed doing so. Depending on what happens with TuSimple’s strategic review of its US operations, you may not need to be listed.
After laying off more than half of its US workforce since December and closing a facility in Texas, Selling its US business is one option TuSimple is studying.
hedge fund between capitalswhich is a great owner Nikola of equity and a large debt holder formerly at Workhorse groupboosted its stake in the troubled Class 1 delivery car maker Access.
Daimler Trucks North America Makes a Class 8 battery electric Excadia at its main plant in Portland, Oregon. Now you sell them there. Titan Freight Systems Do First local customer.
Buying America helps Lightning eMotors New business land. the Teton, Wyoming, Village Improvement Association and Service Area Received nearly $1 million in federal infrastructure money to purchase four electric shuttle buses and Lightning charging equipment.
That’s it for this week. Thanks for reading. click here Get Truck Tech by email on Friday. And keep up with the latest Truck Tech TV talks on FreightWaves YouTube channel Wednesday. The guest scheduled for next week is Steve Jerskythe third CEO in less than a year at electric truck maker Nikola and hydrogen distributor.
the post Carrier startups that lack cash and gamble for fresh capital Debuted charging waves.