Nikola is heading for a showdown this week with its founder, Trevor Milton, who was convicted of securities fraud last year, after he urged other shareholders to reject the electric truckmaker’s latest effort to raise cash.
Milton, who owns about 7 per cent of the company, making him Nikola’s largest shareholder, said on Instagram last month that he voted against the company’s proposal to double the amount of shares it is allowed to issue. He encouraged other shareholders to do the same. Nikola set a July 5 deadline for shareholders to vote on the new stock.
“The company does not need new shares, they need new leadership,” Milton said in his June 15 post.
Read the full story on the Financial Times here.