Home Tech Micromobility Delisted From Nasdaq Over Noncompliance With Stock Exchange Listing Rules

Micromobility Delisted From Nasdaq Over Noncompliance With Stock Exchange Listing Rules

Micromobility Delisted From Nasdaq Over Noncompliance With Stock Exchange Listing Rules

E-scooter company and leader in innovative urban transportation solutions Micromobility, formerly Helbiz, was on Monday delisted from Nasdaq as a result of the company’s noncompliance with the stock exchange’s listing.

Reports reveal that Micromobility delisting from Nasdaq, was as a result of the company’s failure to maintain a share price of at least $1 as required by Nasdaq Listing Rule 5550(a)(2), and for failing to comply with Nasdaq’s minimum stakeholder’s equity requirement for continued listing.

Accordingly, the Nasdaq Hearings Panel has determined to delist the company’s shares and warrants from Nasdaq. Nasdaq will complete the delisting by filing a Form 25

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Notification of Delisting with the U.S. Securities and Exchange Commission SEC, following the expiration of relevant appeal periods. In a delisting letter issued to Micromobility, Nasdaq disclosed that the company may request a listing and hearing review to look into the delisting decision within 15 days from the date of the Delisting Letter.

Micromobility is currently carefully evaluating whether such an appeal of Nasdaq’s decision is warranted. The Company’s evaluation will consider various factors, which include the board’s assessment of the likelihood of the company regaining and maintaining compliance with the continued listing requirements.

Additionally, the evaluation will encompass an analysis of the benefits of continuing to list on Nasdaq compared to the substantial costs, including the extensive commitment of management’s time and resources for complying with various listing requirements.

Notably, Micromobility recently said it intended to seek approval for another reverse split at a special meeting of the stockholders scheduled for January 2024.

The company is firmly dedicated to meeting the Panel’s conditions and is strategically positioned to take further actions to ensure ongoing compliance and bolster investor confidence.

The Company estimates that its expenses related to maintaining its Nasdaq listing are expected to rise significantly in the coming years due to the compliance requirements of the Sarbanes-Oxley Act (SOX) and ESG initiatives, among others. In anticipation of realizing substantial cost savings, the Company sees potential opportunities to streamline operations through delisting and deregistration.

Micromobility removal from Nasdaq is coming after the company’s stock has struggled to remain in compliance since going public via a special purpose acquisition merger in 2021. In March 2023, the company issued a reverse stock split to bring the price back into compliance, the gains from which didn’t last long.

Before the final delisting of Micromobility, the company last month November, received a notice from the Nasdaq hearings panel, stipulating that the company must meet all the continued listing requirements, including the bid price and market value of listed securities requirements by the deadline of December 29, 2023.

The CEO Salvatore Palella at that time expressed appreciation to Nasdaq for the opportunity to continue executing the company’s strategic plan, stating that the team is fully committed to addressing the compliance issues identified by Nasdaq and is actively working towards enhancing its growth trajectory and maximizing shareholder value. However, all efforts seem not up to par, following the company’s recent removal from Nasdaq.

Electric scooter company Bird has filed for Chapter 11 bankruptcy. The six-year-old firm said in a press release that it will continue operations as it aims for “long-term, sustainable growth.” It’s been a tough couple of years for Bird, which went public in late 2021 but was delisted from the New York Stock Exchange after its share price tanked. It’s not the only startup of its kind struggling in recent months: Micromobility.com was delisted from the Nasdaq on Tuesday, and European scooter company Tier just laid offnearly a quarter of its workforce.

In the year after its NYSE debut, Bird’s market cap fell from $2 billion to $70 million.

The bankruptcy filing does not include Bird’s Canadian or European operations, which will continue as usual, the company said. (LinkedIn News)

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