Nikola finally gets enough shareholder support to issue more shares
After three efforts and a modification to Delaware law, Nikola company, a manufacturer of electric trucks, was successful in getting enough shareholders to approve a proposal that will enable it to issue new shares. Nikola company reported on Thursday that the motion authorizing the board to issue more shares had received the necessary number of votes to approve. If investors take notice, Nikola could be able to raise the money it claims it needs to maintain operations and ramp up commercial production. Required more than 50% of all outstanding shares In the past, companies with Delaware corporate incorporation required more than 50% of all outstanding shares to support a request to issue additional shares. The new rule, which took effect on August 1, reduces the threshold for approval of firms to a simple majority of votes cast. “We are immensely grateful for the unwavering support and confidence our stockholders have demonstrated in Nikola company with the passage of all...