Nikola TRE FCEV2
Courtesy of Nikola
Electric truck maker Nikola has still not secured shareholder approval for a latest share issue and has once more postponed its annual meeting to try to garner more support, the company said on Thursday.
Nikola adjourned the June 6 annual meeting until Thursday to try to garner more support for the proposal. Current law in Delaware, where Nikola is incorporated, requires the consent of the owners of a minimum of 50% of the company’s outstanding shares to pass a share increase proposal.
Nonetheless, this law may change on August 1. Under amendments approved by the Delaware Legislature, that are currently awaiting the governor’s signature, a Delaware-registered company will need only a straightforward majority of votes to approve an increase in the variety of authorized shares.
Nikola’s meeting is now postponed again until 4pm ET on August 3, when a latest rule may apply. Nikola said the proposal would pass on Thursday if the latest rule were in place.
Nikola is in search of approval from its shareholders to double its total authorized shares to 1.6 billion from 800 million to give it the flexibility to raise money by issuing latest shares as needed.
Later this month, the company is anticipated to launch a long-awaited version of its Tre electric truck, powered by hydrogen fuel cells. As of May 9, the company had 140 orders for the latest truck. Nikola hopes to raise additional money to help fund the latest truck’s production ramp and construct a hydrogen fueling network in the US and Canada.
Nikola will report its second-quarter results before the US markets open on August 4.