Nikola Corporation, a leader in zero-emissions transportation, has announced a series of strategic corporate actions to enhance financial stability and shareholder value. The company has filed a proxy statement with the SEC, proposing a reverse stock split and a reduction in authorized shares. The reverse stock split, ranging from 1-for-10 to 1-for-30 shares, aims to increase the per-share trading price, maintain NASDAQ listing, and attract a broader investor base. Concurrently, the authorized common stock will be reduced from 1.6 billion to 1 billion shares. These measures are subject to shareholder approval at the upcoming annual meeting on June 5, 2024. Nikola's board may implement the changes anytime before June 5, 2025, or choose not to proceed if deemed not in the company's...Show More

Nikola Corporation, a leader in zero-emissions transportation, has announced a series of strategic corporate actions to enhance financial stability and shareholder value. The company has filed a proxy statement with the SEC, proposing a reverse stock split and a reduction in authorized shares. The reverse stock split, ranging from 1-for-10 to 1-for-30 shares, aims to increase the per-share trading price, maintain NASDAQ listing, and attract a broader investor base. Concurrently, the authorized common stock will be reduced from 1.6 billion to 1 billion shares. These measures are subject to shareholder approval at the upcoming annual meeting on June 5, 2024. Nikola's board may implement the changes anytime before June 5, 2025, or choose not to proceed if deemed not in the company's best interest. Additionally, the company plans to amend its 2020 Stock Incentive Plan, increasing available shares for issuance by 130 million, contingent on the reverse stock split approval. This amendment aims to incentivize employees and align their interests with shareholders. The company has also appointed Grant Thornton LLP as its new independent registered public accounting firm, replacing Ernst & Young LLP. This change follows Nikola's efforts to address previously identified material weaknesses in internal controls over financial reporting. The board recommends shareholder votes in favor of the proposed corporate actions, which are designed to position Nikola for long-term growth and success in the commercial transportation sector.