Nikola, the beleaguered electrical truck developer, is liable to being delisted from Nasdaq, the corporate introduced in an announcement Thursday. regulatory submission.
Nikola mentioned it acquired discover of delisting from the general public change on Could 24 as a result of its inventory worth has remained under $1 for the previous 30 days. The corporate has till Nov. 20 to adjust to Nasdaq’s minimal worth rule, which requires the inventory worth to exceed $1 for 10 consecutive enterprise days.
Shares fell 20% to $0.62. Nikola shares have been as excessive as $65.90 in 2020 when the bustling SPAC was led by Trevor Milton, the corporate’s co-founder and former CEO who has since been indicted on federal securities fraud expenses.
Nikola is one among a rising variety of firms that went public via a merger with a particular objective acquisition agency to see its market cap go into free fall and in some instances into limbo. Lordstown Motors mentioned this month it additionally acquired a delisting discover. The discover and the failed cope with Foxconn prompted Lordstown to execute a reverse inventory cut up. Many of those mobility firms have been interested in the capital that public markets have entry to. And utilizing the SPAC as a monetary software initially appeared to work, with many turning into buzzy meme shares in 2021.
Now the basics are catching up with firms like Nikola and different SPACs like Arrival, Fowl and Canoo.
Nikola has been working to lift more cash by issuing extra shares. It urges shareholders vote for a proposal which might enable it to extend the variety of frequent shares of its firm. The approval of this proposal requires that greater than 50% of the excellent shares vote positively.