Nikola TRE FCEV2
Courtesy: Nikola
Electric heavy-truck manufacturer Nikola is eagerly awaiting the results of its shareholders’ vote on its plan to raise capital through the sale of additional stock. The outcome of this vote will determine if Nikola can proceed with its plan to increase the total number of authorized shares to 1.6 billion from 800 million.
Nikola’s goal is to secure more funding to support the production expansion of its new fuel-cell-powered electric heavy truck, which is scheduled for launch later this month. However, under Delaware law, where Nikola is incorporated, a majority of the total outstanding shares must be voted in favor for a proposal to increase share authorization to pass.
Although 77% of the votes cast during Nikola’s annual meeting in June were in favor of the proposal, the total number of shares voted fell short of the requirement. As a result, the meeting was adjourned for a month to allow for additional shareholder voting. The meeting will resume at 4:00 p.m. ET on Thursday, when Nikola will announce the outcome of the proposal.
This isn’t the first time Nikola has faced the challenge of rallying sufficient votes for a stock-selling proposal. Last year, its annual meeting was adjourned three times before enough votes were obtained to increase the total shares outstanding.
In the second quarter of this year, Nikola produced 33 battery-electric Tre semitrucks and delivered 45 to its dealers, who subsequently sold 66 trucks to customers. Since the beginning of 2023, a total of 99 trucks have been sold by Nikola’s dealers.
Nikola, in its efforts to launch the fuel-cell version of the Tre with extended range, temporarily halted production of the battery-electric Tre. The company already has 12 fleet customers with orders for a total of 140 of the upcoming fuel-cell trucks. Furthermore, in collaboration with California’s department of transportation, Nikola secured a $41.9 million grant from the California Transportation Commission to build six hydrogen refueling stations in southern California to support the fuel-cell trucks.
Nikola is scheduled to release its second-quarter results in early August.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
