Written by Cláudio Afonso | LinkedIn | X
Nikola shares surged more than 6 percent on Wednesday to $0.5351 as voting of all five proposals closed on Tuesday night. In May, the chief executive Steve Girsky bought 1 million shares at $0.54 per share ahead of the voting.
A few minutes after the market close, the company announced on X that the shareholders approved all proposals including the controversial stock split. As of the time of writing, the stock price of the manufacturer is trading 2.52 percent lower following the news.
“We are pleased to announce that at today’s Annual Meeting, stockholders elected all of our Directors and approved all proposals. Thank you for your support in positioning Nikola to move forward. Full voting details will be filed with the SEC.”
Nikola had previously warned that, without the approval of the measure, its stock could face delisting from Nasdaq and “limitations in securing capital for the ongoing operations and business goals.”
Nikola Chairman Steve Shindler had recently stated that he believes that the approval of the reverse stock split could improve the marketability of the common stock.
“We must eliminate the distraction of delisting and position ourselves to raise capital more efficiently and effectively. We believe that if we can achieve a share price at a more consistent level with the Russell 3000 companies, it will encourage investor interest and improve the marketability of our common stock to an even broader range of investors,” he stated.
The Arizona-based company believes that the stock split, which would allow Nikola shares to trader above the Nasdaq threshold of $1, would “have a positive impact by addressing potential delisting concerns and resetting its financial foundation”.
The company has recently announced that AiLO Logistics, a drayage carrier operating in the Ports of Los Angeles and Long Beach, has placed an order for 100 Nikola hydrogen fuel cell electric vehicles (FCEVs) from Tom’s Truck Centers, a member of the Nikola sales and service dealer network.
Deliveries for this new order are scheduled for 2025. This follows a previous order of 50 Nikola FCEVs from Tom’s Truck Centers, with deliveries from that initial order having commenced and continuing throughout 2024.
Nikola has recently published its financial results for the first quarter of year reporting a decline in total revenues and a non-GAAP net loss per share of $0.09. The company produced 43 trucks in the first quarter of which 40 were shipped.
Written by Cláudio Afonso | LinkedIn | X
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