What's Going On With Domestic Technology Company Nxu Shares Today?

Novus Capital Corp. II Class A -10.14%

Novus Capital Corp. II Class A

NXU

0.51

-10.14%

On Wednesday afternoon, Nxu Inc (NASDAQ:NXU) disclosed executing definitive documents to finalize its strategic investment in Lynx Motors.

This deal is at par with Nxu's commitment to accelerate the development of superior highway electrification and continued execution of its Nasdaq compliance plan. 

The company had earlier signed a letter of intent outlining investment in Lynx Motors for the same.

The transaction increases Nxu shareholder equity and ensures the company achieves and maintains Nasdaq's continued listing standards by and beyond Nasdaq's extension deadline of April 7, 2024.

Nxu's investment is structured as a share exchange, whereby shares of $3 million will be exchanged for $3 million in Lynx shares. 

Also, Nxu now holds one seat on Lynx's Board of Directors, allowing the company to help develop Lynx and monitor its investment status. 

To expedite the electrification process, Lynx gave an interest-free promissory note of $250,000 to Nxu in exchange for a bridge loan worth $250,000 subject to registration rights and representations and warranties.

Nxu Founder, Chairman and CEO Mark Hanchett said, "Leveraging symbiotic industry knowledge and similarly ambitious goals, we look forward to joining forces with Lynx to supercharge our collective impact on the future of EVs and charging infrastructure. As a byproduct of the transaction, we're able to continue executing on the compliance plan we presented to Nasdaq and further validate its decision to grant us an additional compliance period."

Price Action: NXU, which closed Wednesday's trading session down by 14.75% at $2.66, is trading higher by 12% by $2.98 premarket on the last check Thursday.

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