Nikola Corporation (NASDAQ: NKLA) stock tumbled 5% in intraday trading Tuesday as the company urged shareholders to vote for a reverse stock split amidst delisting concerns.
Nikola (NKLA) plans to present a pivotal proposal to its shareholders to maintain its listing on the Nasdaq exchange and fortify its financial standing. Scheduled for June 5, 2024, the Annual Stockholder Meeting will feature a vote on five significant items, prominently including a reverse stock split.
The reverse stock split aims to elevate the market price of Nikola’s common stock, aligning it with the Russell 3000 Index companies. Nikola anticipates the move will enhance investor interest and augment the stock’s market appeal.
Steven Shindler, Chairman of the Board at Nikola, articulated the strategic significance of this move. He emphasized the reverse stock split as a pivotal measure to circumvent the potential distraction of delisting while concurrently empowering the company to procure capital more efficiently.
Nikola is actively encouraging its shareholders to cast their votes in support of all proposals, with a particular focus on the reverse stock split outlined in Proposal 2. The company asserts that this step is vital for addressing potential delisting fears and laying a steadier financial foundation for future growth.
Shareholders are called to action to vote by phone, email, or internet before the deadline on June 4, 2024, at 11:59 p.m. Eastern Time. Voting eligibility is for shareholders of record as of April 19, 2024. The company has facilitated easy voting through various platforms, including a dedicated proxy solicitor, Alliance Advisors.
Nikola (NASDAQ: NKLA) Stock Movement
NKLA stock plummeted 4.98% to close at $0.62 on Tuesday. Its value has dropped by 2.31% this week. Trading activity has witnessed 78,793,824 (78.79 million) shares changing hands, lower than the average daily volume of 94.21 million.
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