After skyrocketing 86% over the past five sessions, shares of energy and transport solutions provider Nikola (NASDAQ:NKLA) are up a further 17% at the time of writing today as the company’s move to increase its outstanding shares took another turn.
Trevor Milton, the founder and former CEO of the company commented that he had voted against the proposal and that what the company needs is not new shares but a new leadership!
The company though has clarified that Mr. Milton is not in a position to block any proposal and is in direct violation of his separation agreement. The company has received a delisting notification from Nasdaq for falling short of the minimum closing bid price requirement.
Further, its annual investor meeting was adjourned to July 6 after the proposal to increase its outstanding shares failed to win a majority of all outstanding common shares for approval.
Despite the surge in price, Nikola shares are still languishing 75% lower over the past year while bears still remain in charge with a 20.6% short interest in the stock at present.
Overall, the Street has a $3.25 consensus price target on Nikola alongside a Hold consensus rating.
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