Micromobility.com, formerly known as Helbiz, faced a major setback as it was delisted from the Nasdaq on Monday due to noncompliance with the stock exchange’s listing rules. This move has significant implications for the company and the shared micromobility industry as a whole.
Key Takeaway
Micromobility.com, formerly Helbiz, has been delisted from the Nasdaq due to noncompliance with listing rules, leading to a transition to over-the-counter trading. The company’s delisting reflects broader challenges in the shared micromobility industry, with financial struggles and industry turmoil impacting various players.
Struggle with Nasdaq Compliance
The delisting was a result of Micromobility.com’s failure to maintain a share price of at least $1 and comply with Nasdaq’s minimum stockholders’ equity requirement for continued listing. Despite efforts such as a reverse stock split, the company’s stock continued to struggle, leading to its delisting.
Transition to OTC Markets
Following the delisting, Micromobility.com plans to have its common stock and warrants quoted to be traded over-the-counter. The company emphasized that this transition will not affect its business or operations. This move reflects the challenges faced by shared micromobility companies in the public markets.
Financial Struggles and Industry Turmoil
The company’s financial performance revealed a net loss of $9.5 million in the third quarter, with liabilities vastly outweighing its assets. This delisting comes at a time when the shared micromobility industry is experiencing significant challenges, with other companies facing layoffs and business restructuring.