Corp 1000

: Nikola’s stock drops nearly 2% after EV maker fails to secure shareholder support for new-stock plan

Shares of Nikola Corp. NKLA fell almost 2% in the extended session Thursday after the EV maker said it adjourned its shareholder meeting until Aug. 3 as it failed to secure support for its plan to issue new stock. Thursday’s meeting had re-started from early June because of the same issue. Nikola said that a new corporate law in Delaware, where the company is incorporated, is likely to help. The rule, expected to take effect Aug. 1, changes the voting threshold from a majority of the outstanding common stock to a majority of the shares actually voting on the proposal. “Under this proposed new law, if the annual meeting were to be held today, a sufficient number of shares would have been voted in favor” of the plan, Nikola said. The stock ended the regular trading day down 9% amid broader weakness for equity markets.

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