Nikola Corporation, an American electric vehicle and hydrogen fuel cell truck maker, announced on August 3, 2023 that it had received the required shareholder votes to increase its authorized share count. The increase will allow Nikola to issue new shares to raise capital for its business.
The proposal to increase the authorized share count was approved by a majority of Nikola's shareholders at the company's annual meeting on August 2, 2023. The increase will allow Nikola to issue up to 1 billion new shares, which could be used to fund the company's growth plans.
Nikola has been struggling to raise capital in recent months. The company's stock price has fallen sharply since its initial public offering in June 2020, and it has been plagued by delays in the development of its electric and hydrogen fuel cell trucks.
The increase in the authorized share count will give Nikola more flexibility to raise capital. However, it will also dilute the ownership stake of existing shareholders.
It remains to be seen how Nikola will use the new capital. The company has said that it plans to use the funds to accelerate the development of its electric and hydrogen fuel cell trucks, as well as to expand its manufacturing capacity.
Only time will tell if Nikola will be able to turn its business around. However, the increase in the authorized share count is a positive step for the company, and it gives Nikola more flexibility to raise capital.
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