The electric truck startup and Nikola power-hydrogen have approved the completion of $ 125 million on charges of deceiving investors after misleading them about their products, technical progress, and financial prospects.
Nikola Corp violates the provisions of antifla disclosure and disclosure of the Federal Securities Act, Securities Commission and Exchange say Tuesday.
In July the founder and one chairman of Nikola, Trevor Milton, was released at a guarantee of $ 100 million after begging innocence on charges suspected of lying about the company.
The US lawyer office in Manhattan accused Milton, 39, with two allegations of securities fraud and wire fraud.
He resigned as chairman in September.
SEC said in its order that Milton began a campaign of public relations aimed with inflating and maintaining Nikola stock prices before the company had produced vehicles.
SEC also found that Milton misleads investors about the advancement of Nikola technology, in-house production capabilities, hydrogen production, booking trucks, and financial prospects.
In addition, it was found that Nikola mislead investors misinterpret or eliminate information about the time of refueling vehicle prototypes, as well as economic risks and benefits associated with general partnerships with General Motors.
Nikola also takes place in public through something called a special purpose acquisition company, or Spac, a vehicle that is increasing supervision from seconds and other regulators.
The SEC issued a new accounting guide for spaces this year after their busy life regarding the market.
Spacs, basically a blank check company, is used as a shortcut to go public, through a long and expensive process of traditional initial public offering.
Spacs exploded in popularity last year, reaching pitch fever in 2021 when they collected an average of $ 6 billion every week.
They offer investors on ways to enter companies or companies or industries that are potentially high and potentially high, and some hot sectors lately as electric vehicle makers.
The company will often feel the Spac route for more licenses to highlight projections for the great growth they expect in the future, for example.
In a traditional IPO, a limited company to highlight its past performance, it is not necessarily the largest sales point for young startups that are not widely displayed in sales or profits.
Nikola, based in Phoenix, does not recognize or reject the finding sec.
The company has agreed to stop and quit the violation in the future and a $ 125 million penalty.
Nikola also agreed to continue working with the ongoing SEC investigation.
Orders also set funds to restore penalties to affected investors.
“We are happy to bring this chapter to be close to the company now completing all government investigations,” Nikola said in a statement prepared.
We will continue to execute our strategy and vision to meet our business plan.
“Rose shares are more than 1% on Tuesday.
EV start-up Nikola settles with us for $ 125 million
