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Nikola shareholders approve proposal to concern new inventory

Nikola Tre BEV

Courtesy: Nikola

Electrical truck maker Nikola received shareholder approval to concern new inventory, the corporate said late on Thursday.

The vote paves the way in which for Nikola to lift further funds to assist the launch of its fuel-cell-powered electrical Tre semitruck and the buildout of a hydrogen refueling community within the U.S. and Canada.

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Nikola was compelled to adjourn its annual meeting in June, and again in July, after the whole votes fell wanting the quantity required to go the proposal. The corporate’s founder and former chairman and CEO, Trevor Milton, had lobbied in opposition to the proposal in a sequence of social media posts.

Milton resigned in 2020, however he nonetheless owns about 7.5% of Nikola’s shares and has the best to vote one other 5.8% through an funding automobile he co-owns. He was convicted in October on three counts of fraud associated to his time at Nikola and is because of be sentenced on Sep. 22.

Milton tried to dam the same share-increase proposal final yr. That proposal also passed, however not till after Nikola adjourned final yr’s annual assembly 3 times to drum up extra votes.

Beneath the regulation in Delaware, the place Nikola is integrated, the measure initially required approval by house owners of at the very least 50% of the corporate’s excellent shares to go. Nevertheless, that regulation modified on Aug. 1, and now solely a easy majority of shares voted is required to approve a rise in licensed shares.

Nikola had initially requested shareholders to approve the proposal forward of its June 6 annual assembly. Whereas the proposal was supported by 77% of those that voted, the whole variety of shares voted fell wanting the 50% threshold then required by Delaware regulation. A second try on July 6 fell brief as nicely.

With Thursday’s passage, Nikola stated it could possibly now improve its complete shares excellent from 800 million to 1.6 billion, giving it added flexibility to lift money by issuing new shares as wanted.

The corporate lately started manufacturing of the long-awaited hydrogen gasoline cell model of its Tre electrical semitruck and expects to make its first deliveries later this yr. As of Aug. 2, it had over 200 orders in hand for the brand new truck.

With approval to concern new shares in hand, Nikola is predicted to lift extra money to assist fund the brand new truck’s manufacturing ramp and to broaden its hydrogen refueling community within the U.S. and Canada.

Nikola will report its second-quarter outcomes earlier than the U.S. markets open on Friday, Aug. 4.

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