The Wall Street Journal reported on Thursday that the electric truck manufacturer Nicolas is close to providing bankruptcy,
The shares of the company decreased by 20 % to 60 cents in extended trading.
Arizona -based Nicolas were working with the law firm Bilsbury Winthrov Shu Bitman to explore options, including selling or restructuring the company in bankruptcy, according to the report.
The company was struggling to raise funds and its cash balance diminished, as it continued to lose hundreds of thousands of dollars per unit sold.
Nicolas said on Thursday that she was evaluating a variety of options, including financing as part of the financial restructuring.
However, the company refused to comment on whether it was exploring bankruptcy procedures.
Pilesbury Winthrob Shu Bitman did not immediately respond to Reuters request for comment.
Bloomberg News stated that the electric truck maker explores options, including selling parts of its business or the entire company.
Nicola’s cash and monetary bonuses fell sharply to $ 198.3 million at the end of September, compared to $ 464.7 million at the end of 2023.
Its shares have lost more than 99 % of its value since its launch in 2020.
The arrow fell below the $ 1 mark several times, and the company resorted to multi -shares divisions to comply with the nasdak list rules.
(Bish bed by beglulu;