Nikola shareholders vote to issue new stock over Trevor Milton’s objection

Nikola Motor Company

Source: Nikola Motor Company

Electric truck maker Nikola has lastly gained shareholder approval to issue new stock, the corporate mentioned on Tuesday. Nikola has been attempting for 2 months to win sufficient votes to overcome the objection of its since-departed founder, who beforehand voted his 20% curiosity in Nikola in opposition to the proposal.

The firm mentioned it could possibly now enhance its whole shares excellent from 600 million to 800 million, giving it flexibility to elevate money by issuing new funds as wanted. More than 66% of the entire votes solid, or greater than 211 million shares, have been in favor of the proposal, Nikola mentioned in a press release.

The measure required approval by homeowners of a minimum of 50% of the corporate’s excellent shares to go.

The firm’s June 1 annual shareholders’ assembly was adjourned after Nikola’s founder and former CEO and chairman, Trevor Milton, voted in opposition to 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 entire votes in favor fell in need of the wanted threshold.

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

Milton was indicted by a federal grand jury on 4 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 purchase battery-pack provider Romeo Power in a $144 million all-stock transaction that will not require it to issue new shares. The truck maker is predicted 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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