- EV maker Nikola Corp NKLA founder and former Chair Trevor Milton voted against a proposal to raise capital by issuing new shares, Bloomberg reports.
- The veto led to the adjourning of the annual shareholder meeting to June 30 to request more proxies in favor of the proposal.
- Milton is Nikola's single largest shareholder, with the power to stop measures if a large chunk of Nikola's primarily retail stockholder base does not vote in favor.
- The proposal would increase the number of shares outstanding by 200 million to 800 million, enabling Nikola to sell equity and raise cash at any time in the future.
- Therefore, Milton's move could also thwart Nikola's growth prospects by limiting the company's ability to raise capital, especially when it looks to go on a mass production drive with its electric and hydrogen fuel cell trucks.
- In July, Milton will face charges of overstating the company's technical capability and prospects. Milton had resigned from Nikola in 2020.
- The Department of Justice had subpoenaed Milton as part of an investigation.
- Price Action: NKLA shares traded lower by 2.34% at $7.08 in the premarket on the last check Friday.
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