Proposal to Issue New Stock Approved by Nikola Shareholders

Proposal to Issue New Stock Approved by Nikola Shareholders


Nikola Tre BEV

Courtesy: Nikola

Electric ⁤truck maker Nikola won shareholder approval to issue new stock, the company said late on Thursday.

The vote paves the way for Nikola to raise additional funds to support⁢ the launch of its⁣ fuel-cell-powered electric Tre semitruck and the ⁣buildout of a hydrogen refueling network in‌ the U.S. ‍and Canada.

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Nikola was ​forced to adjourn its annual meeting in June, and‌ again in July, after⁣ the total votes fell short⁣ of the number required to pass the proposal. The company’s ‍founder and former‍ chairman and CEO, Trevor ​Milton, had lobbied against the proposal in⁣ a‌ series of⁤ social media posts.

Milton resigned in 2020, but he still owns about ​7.5% of Nikola’s shares and has the⁣ right to vote another 5.8% via ​an investment ⁤vehicle he co-owns. He was convicted ⁢in October on three counts of fraud related to his time at Nikola and is due to be sentenced on Sep. 22.

Milton ‌tried to block ⁣a similar share-increase proposal last year. That…

2023-08-03 15:35:36
Link from www.cnbc.com

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