Written by Cláudio Afonso | [email protected] | LinkedIn | X
Shares of Nikola fell 12% in morning trading on Thursday after asking its shareholders to approve a reverse stock split.
The startup plans to seek approval for a reverse stock split ranging from 1 share for every 10 shares to 1 share for every 30 shares, as stated in a SEC filing. Along with this, the number of authorized shares of common stock will be reduced from 1,600,000,000 to 1,000,000,000.
Nikola aims to avoid a delisting from Nasdaq in the future on the basis of the Minimum Bid Price Requirement of $1.00 per share and “broaden the pool of investors that may be interested in investing,” the company added.
As of today, the electric and hydrogen-powered truck company Nikola counts 399 institutional shareholders holding a total of 462,262,466 shares. The figure represents a new all time high for the Phoenix-based company.
Recently, Nikola announced that it produced and wholesaled 43 and 40 Class 8 hydrogen fuel cell electric vehicles, respectively, at its factory in Coolidge, Arizona.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
