Romeo Power Inc. (NYSE: RMO) will be acquired by Nikola Corp, according to Bloomberg.
Shares in Romeo increased 23% to 67 cents per share and a $102 million market cap.
Nikola, Romeo Power’s largest customer, valued the company at around $144 million in a statement on Monday.
It’s a “sliver” of the approximately $1.33 billion the Cypress battery maker for commercial electric vehicles was valued at in its reverse merger last January, Bloomberg said.
Nikola will provide $35 million in interim funding to support its supplier’s operations until the transaction is complete.
Romeo Power issued a warning to investors that there was substantial doubt in its ability to continue as a going concern after the company ended the first quarter with $41.3 million in cash, according to Bloomberg.