Nikola TRE FCEV2
Electric truck maker Nikola said on Thursday it had not yet received shareholder approval for a new share issue, and again postponed its annual meeting to try to win more support.
Nikola has postponed its June 6 annual meeting until Thursday in an attempt to drum up more support for the proposal. Existing law in Delaware, where Nikola is incorporated, requires the approval of owners of at least 50% of the company’s outstanding shares to pass a stock increase proposal.
However, the law may change on August 1. Under the amendment approved by the Delaware legislature and currently awaiting the signature of the state’s governor, companies incorporated in the state need only a simple majority to approve the increase in authorized shares.
Nikola’s meeting is now adjourned again until August 3rd at 4pm ET, when the new rules will likely go into effect. Nikola said the proposal would pass on Thursday if the new rules are in place.
Nikola is asking shareholders to approve doubling its total number of authorized shares from 800 million to 1.6 billion, giving it the flexibility to issue new shares to raise cash as needed.
The company is expected to launch a hydrogen fuel cell version of its long-awaited Tre electric semi truck later this month. As of May 9, the company had orders for 140 new trucks. Nikola hopes to raise more cash to fund production of new trucks and build a hydrogen refueling network in the U.S. and Canada.
Nikola will report its second-quarter results on Aug. 4 before U.S. markets open.