Nikola NKLA Defers Annual Meeting, Delays Share Increase Proposal

Electric truck manufacturer Nikola is still working towards obtaining shareholder approval to issue new stock and has once again postponed its annual meeting in order to garner more support, as announced on Thursday.

Nikola had postponed its annual meeting from June 6, hoping to gather additional backing for the proposal. As per current Delaware law, which is where Nikola is incorporated, approval from owners of at least 50% of the company’s outstanding shares is required for a share increase proposal to pass.

However, this law may change on August 1. Amendments approved by Delaware’s state legislature, awaiting signatures from the state’s governor, propose that a company incorporated in the state would only need a simple majority of shares voted to approve an increase in authorized shares.

Nikola’s meeting has once again been postponed until 4 p.m. ET on August 3, when the new rule may come into effect. Nikola states that the proposal would have been successful on Thursday if the new rule had been in place.

Nikola is seeking approval from its shareholders to double its total authorized shares from 800 million to 1.6 billion, allowing for flexibility in raising funds through issuing new shares as necessary.

The company is anticipated to release the highly-anticipated hydrogen fuel cell version of its Tre electric semitruck later this month. As of May 9, the company had received 140 orders for the new truck. Nikola aims to raise additional funds to support the production ramp-up of the new truck and expand its hydrogen refueling network across the United States and Canada.

Nikola will disclose its second-quarter results before the U.S. markets open on August 4.