Nikola Corp (NASDAQ:NKLA) revealed Thursday that the autonomous trucking company has yet again fallen short of winning the amount of shareholder votes needed for the company to issue new stock. The company was forced to adjourn its annual meeting again to try to win more support.
In an effort to gather more support for the proposal, Nikola had rescheduled its annual meeting, originally slated for June 6, to Thursday. Under the current Delaware law, where Nikola is incorporated, the approval of at least 50% of the company's outstanding shares is required to pass a proposal for increasing shares.
However, under amendments approved by Delaware’s state legislature, Nikola may only need a simple majority of shares voted to approve an increase in authorized shares. The law is awaiting signature by the state governor, John Carney. Once signed, the law is expected to take effect August 1.
Nikola’s meeting is now adjourned again until 4 p.m. ET on Aug. 3, after the new rules take effect. Nikola said that proposal would have passed on Thursday had the new rule been in place.
Nikola is looking to shareholders for the green light to double the number of authorized shares from 800 million to 1.6 billion. This move would allow the company to issue new shares as needed and raise cash.
The company is also gearing up to launch the long-awaited hydrogen fuel cell version of its Tre electric semi-truck later this month. They've already received 140 orders for the new truck, and they're hoping to raise more money to support production and expand their hydrogen refueling network in the U.S. and Canada.
Shares in the company have surged as much as 60% Thursday after the company revealed that they have entered a strategic supply partnership with hydrogen production company, BayoTech, Inc.
Shares of NKLA are up 60.25% near end of trading Thursday.