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Nikola shareholders vote to situation new inventory over Trevor Milton’s objection

Nikola Motor Firm

Supply: Nikola Motor Firm

Electrical truck maker Nikola has lastly received shareholder approval to situation new inventory, the corporate mentioned on Tuesday. Nikola has been making an attempt for 2 months to win sufficient votes to beat the objection of its since-departed founder, who beforehand voted his 20% curiosity in Nikola towards the proposal.

The corporate mentioned it will possibly now improve its complete shares excellent from 600 million to 800 million, giving it flexibility to lift money by issuing new funds as wanted. Greater than 66% of the full votes solid, or greater than 211 million shares, had been in favor of the proposal, Nikola mentioned in an announcement.

The measure required approval by house owners of at the least 50% of the corporate’s excellent shares to move.

The corporate’s June 1 annual shareholders’ assembly was adjourned after Nikola’s founder and former CEO and chairman, Trevor Milton, voted towards the proposal. The assembly briefly resumed on June 30, and once more on July 18, solely to be adjourned once more on each events as the full votes in favor fell in need of the wanted threshold.

Milton, who based Nikola in 2014, left the company in September 2020 following allegations of fraud. He stays the corporate’s largest shareholder. Milton owns about 11% of Nikola’s inventory outright and controls one other 9% through an funding car that he co-owns, giving him efficient management of about 90 million shares of Nikola’s inventory.

Milton was indicted by a federal grand jury on four counts of fraud associated to representations he made to potential Nikola traders. His trial is scheduled to start in September. Milton has denied the allegations.

Nikola mentioned on Monday that it has agreed to acquire battery-pack provider Romeo Power in a $144 million all-stock transaction that will not require it to situation new shares. The truck maker is anticipated to report its second-quarter outcomes — and its plans for the extra shares — earlier than the U.S. markets open on Thursday.

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