Nikola's Boardroom Showdown: Former Chairman Trevor Milton-Led Shareholder Group Slams CEO Girsky, Says "Our Nominations Still Stand"

M&M Residual, which owns approximately 4.5% of Nikola Corporation NKLA, issued a statement on its five director candidates for election to the company’s nine-member Board of Directors.

The stockholder group’s director candidates include Cole Cannon, Derek Johnson, Hans Peterson, Paul Southam, and Dave Sparks.

“Since taking over as Chair in 2020, CEO Steve Girsky and his Board have overseen a staggering and consistent decline in Nikola’s stock from $30+ per share to a delisting Nasdaq price of less than seventy cents per share. Clearly, the status quo cannot continue,” M&M Residual said in a statement.

Over the last one year, shares of Nikola lost over 65% of its stock value, per data from Benzinga Pro.

On February 9, the company said its board of directors had rejected a slate of five dissident nominees proposed by an entity controlled by former Executive Chairman Trevor Milton for election as directors.

As the Manager of M&M Residual, Trevor Milton may be deemed to beneficially own the 51.04 million shares of common stock directly owned by M&M Residual.

“While the Board recently publicly stated that it rejected our nominations, the reality is that the Company has not legally done so and that our nominations still stand,” the statement added.

M&M Residual also slammed, saying Nikola’s board has overseen operational underperformance, value-destructive acquisitions, the breakdown of the Iveco Group-Nikola partnership, the loss of meaningful European market share, and the sale of key assets while taking on debt.

Under Girsky’s leadership, stockholders suffered an approximate 72% decline in value, the statement read.

M&M Residual, in fact, has been approached by numerous stockholders who want to see CEO Steve Girsky and his Board replaced with high-integrity individuals, as per the stockholder group’s statement.

“This is a reasonable request, especially considering Nikola recently disclosed that substantial doubt exists regarding its ability to continue as a going concern through the next 12 months,” M&M Residual said in the statement.

Per the statement issued by M&M Residual, these executives collectively possess the operational, supply chain, and electric vehicle experience that may initiate a turnaround point at Nikola. 

Price Action: NKLA shares are trading lower by 3.9% to $0.71 on the last check Tuesday.

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