Nikola adjourned its annual meeting for the second time because it lacked the votes to double the number of its outstanding shares. But the next try in August comes down to a stroke of the pen from Delaware Gov. John Carney.
The electric truck maker and hydrogen developer currently needs 50% plus one vote to allow it to increase the number of shares outstanding to 1.6 billion from 800 million. Too few shareholders have so far given their consent. But a rule change in the state where Phoenix-based Nikola is incorporated could solve the problem. This is scheduled for August 1, two days before Nikola plans to count the votes again.
Some of the new shares would be sold to help Nikola pay interest on a $200 million loan from hedge fund Antara Capital. The rest could help Nikola raise capital to scale the business of producing and distributing fuel cell and hydrogen trucks.
The Delaware House of Representatives on Friday passed amendments to the Delaware General Corporations Act lowering the voting threshold from a majority of outstanding shares to voting shares. The state Senate approved the changes in May.
Nikola has enough votes to pass the proposal to increase the share below the lower threshold. The Company has used a proxy solicitation firm in the past to obtain additional proxies. He no longer needs to if Carney signs the legislation.
Related Articles:
Nikola proposes to liquidate battery manufacturer Romeo Power
Nikola benefits from European JV and refocuses on fuel cells at home
Analysis: How would a Nikola failure affect the outlook for hydrogen?
Click for more FreightWaves articles by Alan Adler.
The post Nikola still trying to increase shares but proxies may not be needed appeared first on FreightWaves.