© Reuters
Delaware Governor John Carney has officially signed new legislation that clears the way for Nikola Corp (NASDAQ:) to double its existing stock. The significant development allows the electric truck maker to put shares up for sale, generating funds to cover debt interest payments and provide critical support for the upcoming launch of its hydrogen-powered fuel cell trucks. .
Twice the automaker failed to receive enough shareholder proxies to approve increasing the number of shares from 800 million to 1.6 billion, leading to two adjournments of Nikola’s annual meeting .
Prior to the rule change, a vote to increase the number of shares required a majority, or about 400 million proxies, equal to 50% plus one of all outstanding shares. However, the new regulations only require a majority of shares voting on the proposal. The Delaware automaker said it already had enough votes for the increase under the new law. The next count will be on August 3.
Founder and former executive chairman Trevor Milton broke a nearly three-year silence on social media to urge shareholders to vote against the measure or change their vote. Trevor Milton, who owns about 8% of Nikola’s stock, is due September 22 on three federal fraud convictions.
The company is nearing the end of arbitration with Milton over the former chairman’s reimbursement of a $125 million fine the company agreed to pay to the Securities and Exchange Commission in connection with the fraud cases of Milton.
2023-07-19 18:04:00
#Law #Nikola #Increase #Stock #Investing.com
