Nikola failed for the second time since June to get enough shareholders to vote on a proposal that will enable the EV truck maker to issue more shares in a bid to elevate more capital.
The firm mentioned Thursday it adjourned its annual assembly of shareholders till August 3 when it should attempt as soon as more to entice enough shareholders to vote for the measure. The firm is required to secure more than 50% of all excellent shares to vote in favor of the proposal.
Nikola failed to get enough votes at its June 7 assembly and pushed the vote to July 6.
This subsequent time might show fruitful for Nikola thanks to a change in Delaware legislation that’s anticipated to go into impact August 1. Under the change, firms integrated in Delaware that need to enhance the variety of shares would solely want to obtain a easy majority of the votes solid. Amendments to the prevailing legislation has been authorised by Delaware’s state legislature and is now awaiting Gov. John Carney’s signature.
Nikola mentioned that had the brand new legislation been in place, its proposal to issue more shares would have handed.
Nikola is amongst a bunch of EV and mobility startups that went public through mergers with particular function acquisition firms earlier than producing income, by no means thoughts being worthwhile. Many of those, notably Nikola, had been swept up within the meme inventory craze through the pandemic and noticed shares — and market cap — soar into the stratosphere. All of those shares have come crashing again down to earth, leaving EV SPACs like Nikola scrambling for money.
Nikola has additionally sought methods to cut back prices. In May, the corporate laid off 270 workers, or about 23% of its workforce, and introduced plans to limit electrical truck efforts to North America. About 150 employees who had been supporting the corporate’s European applications had been laid. Another 120 workers based mostly on the firm’s Phoenix and Coolidge, Ariz., websites additionally misplaced their jobs. About 900 workers stay.