Nikola extends voting on authorizing new shares to raise capital
Nikola Corp. shareholders are voting in favor to approve a proposal critical to the hydrogen fuel cell truck developer’s survival, but the company still needs more votes to put its plan into action.
Although 77 percent of those shareholders voting agreed to double Nikola’s outstanding shares to 1.6 billion from 800 million, the company has not obtained the required majority of all common stock holders to approve the measure.
It adjourned Wednesday’s annual shareholders meeting until July 6 to solicit more votes. Nikola declined to say what percentage of all shareholders have voted to approve the proposal.
The plan provides a way for the cash-strapped startup to raise new capital to build hydrogen-powered Class 8 trucks and a national fueling network.
Additionally, the Phoenix company may still have to execute a reverse stock split to remain in compliance with Nasdaq’s listing requirements.
If the share authorization measure stalls or fails, the company could try again.