Nikola (NASDAQ:NKLA) stock is on the move Tuesday as investors prepare for a potential catalyst for the electric vehicle (EV) shares on Oct. 12.
That’s the newest deadline for a deal between Nikola and Romeo Power (NYSE:RMO). Nikola has been planning to acquire Romeo Power and recently signed an extension to its offer for the battery company.
The deal would have Nikola acquire all outstanding shares of RMO stock using its own. This would have holders of RMO receive 0.1186 shares of NKLA stock for each share they own. That would have RMO shareholders owning a 4.5% stake in Nikola after the acquisition.
More RMO Shares Need Tendered
Nikola extended the current offer, as only about 70 million shares of RMO stock have been tendered. That represents roughly 37.65% of all the company’s outstanding shares. In order for the deal to go through, a minimum of 50.1% of shares must be tendered.
Nikola also makes sure to mention that Oct. 12 might not be the last deadline for the deal with Romeo Power. The company has the option to further extend the deadline further if enough shares aren’t tendered in the offer.
Today’s news saw shares of NKLA and RMO initially rising in morning trading. However, those stocks are down 1.2% and .3%, respectively, as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.