Nikola falls short of winning shareholder support to issue new stock – but a new law may help

Electric truck maker Nikola is still short of winning shareholder approval to issue new stock and has once again adjourned its annual meeting to try to win more support, the company said on Thursday.

Nikola had adjourned its June 6 annual meeting until Thursday to try to drum up more support for the proposal. Current law in Delaware, where Nikola is incorporated, requires approval from owners of at least 50% of the company’s outstanding shares to pass a share increase proposal.

However, that law may change on Aug. 1. Under amendments approved by Delaware’s state legislature and now awaiting signature by the state’s governor, a company incorporated in the state will need only a simple majority of shares voted to approve an increase in authorized shares.

Nikola’s meeting is now adjourned again until 4 p.m. ET on Aug. 3, when the new rule may be in effect. Nikola said that proposal would have passed on Thursday had the new rule been in place.

Nikola is asking its shareholders for approval to double its total shares authorized, to 1.6 billion from 800 million, to give it flexibility to raise cash by issuing new shares as needed.

The company is expected to launch the long-awaited hydrogen fuel cell version of its Tre electric semitruck later this month. As of May 9, it had 140 orders in hand for the new truck. Nikola is hoping to raise additional cash to help fund the new truck’s production ramp and to build out its hydrogen refueling network in the U.S. and Canada.

Nikola will report its second-quarter results before the U.S. markets open on Aug. 4.