Electric-truck maker Nikola on Thursday adjourned its annual shareholder meeting for the second time this year, as it could not muster sufficient votes for a proposal to increase the number of outstanding shares.
The Arizona-based company pushed its shareholder meeting thrice last year as it struggled to garner investor approval for a similar proposal.
A higher number of outstanding shares would allow the company to issue equity in a bid to raise funds.
Electric vehicle companies have been struggling with a cash crunch at a time when access to capital has been constrained, limiting their ability to ramp up production.
Nikola, which has pushed its annual meeting to Aug. 3, said a proposed amendment to Section 242 of the Delaware General Corporation Law is expected to be effective Aug. 1.
Under the proposed new law, the voting threshold for approval to increase the number of shares would change from majority of outstanding stock to majority of shares voting on the proposal, smoothening the way for Nikola to get support for its proposal.
Earlier this month, the company’s top shareholder and founder, Trevor Milton, urged investors to vote against the electric truck maker’s proposal to increase the number of shares it is allowed to issue and called for a change in leadership.
On Wednesday, Nikola said wholesale and retail sales of its electric vehicles jumped in the second quarter from the first.
