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Nikola Corp, as soon as thought-about a possible rival for the Tesla Semi with its supposed hydrogen-powered vans, is dealing with potential delisting from Nasdaq after its share value fell under the alternate’s minimal bid value necessities. Nikola’s shares fell 20% on Thursday, closing at 62 cents per share, marking an all-time low.
The corporate introduced this growth in a Kind 8-Okay filed with america Securities and Alternate Fee (SEC). In response to the submitting, Nasdaq mandates listed securities to take care of a closing minimal bid value of $1 per share. Sadly, Nikola has failed to satisfy this requirement for over 30 consecutive enterprise days.
“On Might 24, 2023, Nikola Company acquired written discover from The Nasdaq Inventory Market LLC notifying the Firm that it isn’t in compliance with the minimal bid value necessities set forth in Nasdaq Itemizing Rule 5450(a)(1) for continued itemizing on Nasdaq. Nasdaq Itemizing Rule 5450(a)(1) requires listed securities to take care of a minimal closing bid value of $1.00 per share, and Itemizing Rule 5810(c)(3)(A) gives {that a} failure to satisfy the minimal closing bid value requirement exists if the deficiency continues for a interval of 30 consecutive enterprise days. Based mostly on the closing bid value of the Firm’s widespread inventory for the 30 consecutive enterprise days previous to the date of the Notification Letter, the Firm doesn’t presently meet the minimal closing bid value requirement,” Nikola acknowledged in its submitting.
Given the scenario, Nikola has till November 20, 2023, to regain compliance with Nasdaq’s necessities. To realize this, NKLA shares would want to shut at a value of no less than $1 for at least 10 consecutive enterprise days. Rebuilding investor confidence could be essential for the corporate to perform this aim.
Whereas Nikola was as soon as a hovering inventory, the corporate has been stricken by controversies, together with allegations that its founder made false and deceptive statements about its expertise and enterprise prospects. These allegations embody critical misrepresentations concerning the Nikola One, a supposed hydrogen-powered truck featured in a advertising and marketing video that was later revealed to be staged.
As highlighted in a report by Yahoo Finance, even when Nikola manages to keep away from delisting from Nasdaq, the corporate nonetheless faces important challenges, notably with the ramp of the Nikola Tre, an electrical truck that immediately competes with the Tesla Semi, which is already seeing preliminary manufacturing. If Nikola had been to be delisted from Nasdaq, it will be a major setback. Delisting wouldn’t solely make it tougher for the corporate to boost capital and appeal to new clients however may additionally inflict additional injury to Nikola’s fame.
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