September 30, 2022

Troubled electric truck maker Nikola has raised its annual meeting to July 18, giving the company time to lobby shareholders to pass a fund-raising measure to issue more common stock.

Nicola said the proposal is important to support business growth. The company has been slow to bring the Tre semi-truck to market due to a series of controversies stemming from founder Trevor Melton, which led to him being removed from the CEO position and a $125 million fine on the US Securities and Exchange Commission for deceiving investors.

Nicolas initially held the annual shareholder meeting on June 1st. It was postponed after Milton, who was indicted last year on three counts of fraud for deceiving investors with misleading data, rejected the proposal. Nicolas resumed its meeting on June 30 and was then adjourned again to give shareholders more time to vote on the proposal.

The meeting was rescheduled for mid-July in order to muster more votes for a proposal that would allow Nicolas to increase the authorized number of common shares to 800 million, up from 600 million.

More than 48% of all outstanding shares have been voted for, Nicola said, but more than 112 million shares have yet to be voted on.

Mark Russell, CEO, said in a statement that approval of the common stock increase would provide “the flexibility to support future growth and develop our business.”

The company said that “Nikola’s shareholders voted overwhelmingly in favor of Proposition 2, except for a shareholder vote that appears to represent more than 85% of the vote against Proposition 2.”

“Approval of Proposition No. 2, which requires the passage of a majority of the outstanding common stock, is very important,” the statement said.

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