For the second time since June, Nikola failed to get enough shareholders to vote on a proposal that would allow the EV truck maker to issue more shares in an effort to raise more capital.
The company said Thursday it adjourned its annual shareholder meeting until Aug. 3, when it will again try to attract enough shareholders to vote in favor of the measure. The company must secure more than 50% of all outstanding shares to vote in favor of the proposal.
Nikola did not receive enough votes at the June 7 meeting and moved the vote to July 6.
This next time could prove fruitful for Nikola thanks to a change in the Delaware law that is expected to go into effect on August 1. votes cast. Amendments to the existing law have been approved by the Delaware state legislature and are now awaiting signature by Governor John Carney.
Nikola said that if the new law had been in effect, her proposal to issue more shares would have been passed.
Nikola belongs to a group of EV and mobility startups that went public through mergers with special acquisition companies before generating revenue, let alone profit. Many of them, especially Nikola, were swept up in the stock meme craze during the pandemic and saw stocks — and market cap — jump into the stratosphere. All of these stocks are back on their feet, leaving EV SPACs like Nikola looking for money.
Nikola has also looked for ways to reduce costs. In May, the company laid off 270 employees, or about 23% of its workforce, and announced plans to limit its electric truck efforts to North America. About 150 workers supporting the company’s European programs were hired. Another 120 employees at the company’s Phoenix and Coolidge, Ariz., locations also lost their jobs. About 900 employees remain.