The struggling electric-truck developer Nikola is in danger of being delisted from the Nasdaq, the company said in a regulatory filing on Thursday.
Nikola said he received a delisting notice from the stock exchange on May 24 after the stock had fallen below $1 for the past 30 days. The company must comply with the Nasdaq floor price rule, which requires the stock to be above $1 for 10 consecutive business days through Nov. 20.
Nikola shares trade as high as $65.90 in 2020 as company co-founder and former CEO Trevor Milton, who was indicted on federal securities fraud charges, led a successful SPAC. was done. Since then, the stock has fallen 20% to $0.62. Nikola is one of a growing number of companies that have gone public through mergers with special-purpose companies, causing their market capitalization to plummet and, in some cases, bogged down. Rosetown Motors also said it received a delisting notice earlier this month. This announcement and the failed deal with Foxconn led to Lordstown's reverse stock split. Many of these mobility companies are attracted by public market-accessible capital. And with many stocks becoming popular meme stocks in 2021, using SPACs as a financial tool initially seemed to work. Now the fundamentals are catching up with companies like Nikola and other SPACs like Arrival, Bird and Canoo.
Nikola is working to raise more money by issuing shares. She is asking her shareholders to vote on proposals that would allow her to increase the number of common shares in her company. Passing the bill requires approval of at least 50% of the outstanding shares.