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

Nikola Motor Organization

Resource: Nikola Motor Organization

Electric truck maker Nikola has eventually won shareholder acceptance to issue new stock, the corporation claimed on Tuesday. Nikola has been hoping for two months to win sufficient votes to get over the objection of its due to the fact-departed founder, who beforehand voted his 20% fascination in Nikola from the proposal.

The corporation claimed it can now boost its complete shares superb from 600 million to 800 million, offering it versatility to increase hard cash by issuing new money as required. A lot more than 66% of the whole votes forged, or extra than 211 million shares, ended up in favor of the proposal, Nikola said in a statement.

The measure demanded acceptance by house owners of at least 50% of the firm’s superb shares to go.

The company’s June 1 annual shareholders’ conference was adjourned immediately after Nikola’s founder and previous CEO and chairman, Trevor Milton, voted in opposition to the proposal. The assembly briefly resumed on June 30, and again on July 18, only to be adjourned once again on both events as the overall votes in favor fell shorter of the wanted threshold.

Milton, who launched Nikola in 2014, remaining the organization in September 2020 subsequent allegations of fraud. He remains the firm’s biggest shareholder. Milton owns about 11% of Nikola’s stock outright and controls an additional 9% by means of an investment car or truck that he co-owns, giving him powerful command of about 90 million shares of Nikola’s stock.

Milton was indicted by a federal grand jury on 4 counts of fraud relevant to representations he created to opportunity Nikola investors. His trial is scheduled to commence in September. Milton has denied the allegations.

Nikola claimed on Monday that it has agreed to purchase battery-pack supplier Romeo Electric power in a $144 million all-stock transaction that will not likely call for it to problem new shares. The truck maker is anticipated to report its second-quarter benefits — and its designs for the extra shares — ahead of the U.S. markets open on Thursday.