Nikola Corp said on Tuesday that it may sell shares to raise up to $400 million in order to ramp up production in the face of rising costs.
The company, which is dealing with higher labor and raw material costs as a result of decades of high inflation and the Russia-Ukraine war, stated that it is under no obligation to sell any shares and that sales may be halted at any time.
Nikola received investor approval earlier this month to increase the number of authorized shares from 600 million to 800 million after delaying its annual shareholder meeting several times to solicit more proxies in support of the proposal.
According to Bloomberg News, founder and former CEO Trevor Milton voted against the company’s proposal to issue new shares at its first annual shareholder meeting this year.
Nikola announced on Tuesday that it has appointed Citigroup Global Markets as its sales agent.
