Nikola Delays Annual Meeting Again After Vote Shortfall On Plan To Increase Shares

After too few investors voted to approve a plan to increase its authorized share count, the annual meeting was delayed again. The founder doesn't like the move.

The Phoenix-based company, which started delivering electric semis this quarter built at its Coolidge, Arizona, plant, wants to raise much-needed funds by increasing its total outstanding shares by a third. Half of the votes received so far back the plan are short of what is needed for approval. More than 112 million shares haven't been voted. The annual meeting was delayed by a month after one of the largest shareholders voted against the proposal.

Mark Russell urged stockholders to approve the increase in the authorized number of common shares.

After a turbulent period that followed its public listing via a SPAC merger, the company is trying to expand production of electric and hydrogen cell trucks. After being accused of lying to investors and going to trial for fraud, he was forced out of the company. The trial was supposed to start July 18 but has been delayed until September. He denied doing anything wrong. The matter was settled with the SEC last year, where it was agreed that a $125 million fine would be paid.

The stock plan is being held up by Milton. The company did not identify the stockholder who appeared to represent more than 85% of the votes against Proposal 2.

A $125 million fine was agreed to by the Securities and Exchange Commission and the person who settled it.

If the stock count plan isn't approved, the company will have just 33 million shares available to be issued, since they have already issued 567 million shares.

The shares rose 3.6% in the afternoon.