EV truck maker Nikola fails once more to safe sufficient shareholder assist to challenge extra shares

Nikola failed for the second time since June to get sufficient shareholders to vote on a proposal that might enable the EV truck maker to challenge extra shares in a bid to boost extra capital.

The corporate stated Thursday it adjourned its annual assembly of shareholders till August 3 when it’s going to attempt as soon as extra to draw sufficient shareholders to vote for the measure. The corporate is required to safe greater than 50% of all excellent shares to vote in favor of the proposal.

Nikola didn’t get sufficient votes at its June 7 assembly and pushed the vote to July 6.

This subsequent time could show fruitful for Nikola because of a change in Delaware regulation that’s anticipated to enter impact August 1. Below the change, firms integrated in Delaware that wish to enhance the variety of shares would solely must obtain a easy majority of the votes forged. Modification to the present regulation has been accredited by Delaware’s state legislature and is now awaiting Gov. John Carney’s signature.

Nikola stated that had the brand new regulation been in place, its proposal to challenge extra shares would have handed.

Nikola is amongst a bunch of EV and mobility startups that went public through mergers with particular goal acquisition firms earlier than producing income, by no means thoughts being worthwhile. Many of those, notably Nikola, have been swept up within the meme inventory craze throughout the pandemic and noticed shares — and market cap — soar into the stratosphere. All of those shares have come crashing again all the way down to earth, leaving EV SPACs like Nikola scrambling for money.

Nikola has additionally sought methods to scale back prices. In Might, the corporate laid off 270 staff, or about 23% of its workforce, and introduced plans to limit electrical truck efforts to North America. About 150 employees who have been supporting the corporate’s European packages have been laid off. One other 120 staff primarily based on the firm’s Phoenix and Coolidge, Ariz., websites additionally misplaced their jobs. About 900 staff stay.