Nicola shareholders vote to issue new shares after Trevor Melton objected

Nikola Motor Company

Source: Nikola Motor Company

electric truck maker Nicola The company said Tuesday that it has finally won shareholder approval to issue new shares. Nikola has been trying for two months to win enough votes to override the objection of its since-departed founder, who had previously voted with 20% in Nikola against the proposal.

The company said it can now increase its total outstanding shares from 600 million to 800 million, giving it the flexibility to raise cash by issuing new funds as needed. More than 66% of the total votes cast, or more than 211 million shares, supported the proposal, Nicola said in a statement.

The procedure requires the approval of the owners of at least 50% of the company’s outstanding shares.

The company’s annual shareholder meeting on June 1 was postponed after Nicola’s founder and former CEO and chairman, Trevor Melton, voted against the proposal. The meeting resumed briefly on June 30and again July 18only to be deferred again on both occasions as the total support vote fell below the required threshold.

Milton, who founded Nicola in 2014, leave the company In next September 2020 fraud allegations. He remains the company’s largest shareholder. Melton directly owns approximately 11% of Nikola’s shares and controls another 9% through a co-owned investment vehicle, giving him effective control of approximately 90 million Nikola shares.

Milton was indicted by a federal grand jury on Four counts of fraud relating to representations made by Nikola’s potential investors. His trial is due to begin in September. Milton denied the allegations.

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Nicolas said on Monday that he has I agreed to get it battery pack supplier Romeo Power In a $144 million all-share transaction that does not require the issuance of new shares. The truck maker is expected to announce second-quarter results — and its plans for additional shares — before US markets open on Thursday.

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