A Difficult Year for Micromobility Companies
The shared micromobility industry has been facing significant challenges in recent months. One of the pioneers, Micromobility.com, formerly known as Helbiz, has hit a major roadblock. The company was delisted from the Nasdaq stock exchange on Monday due to non-compliance with listing rules.
Reasons for Delisting
According to a regulatory filing, Micromobility.com’s common stock and warrants were suspended from trading at the start of business Wednesday. The company failed to maintain a share price of at least $1 and did not comply with Nasdaq’s minimum stockholders’ equity requirement for continued listing.
Challenges in Maintaining Listing
Micromobility.com has been struggling to meet these requirements since going public via a special purpose acquisition merger (SPAC) in 2021. In March, the company issued a reverse stock split to bring the price back into compliance, but this measure was short-lived.
Recent Developments
In September, Micromobility.com announced its intention to seek approval for another reverse split at a special meeting of the stockholders scheduled for January 2024. However, this meeting has been postponed, and the move to do another reverse split has also been delayed.
Impact on Business Operations
Micromobility.com stated in its filing that it will apply to have its common stock and warrants quoted to be traded over-the-counter (OTC). This decision comes after Bird, a competitor, was delisted from the Nasdaq stock exchange in September. Bird also chose to move its stock to OTC markets.
Micromobility.com claims that this transition to OTC markets will have no effect on the company’s business or operations. However, the startup’s rebranding efforts aim to shift focus towards retail. In September, Micromobility.com opened its first brick-and-mortar store in SoHo, New York City, and has an e-commerce site featuring a small selection of e-scooters, e-bikes, helmets, and water bottles.
Financial Performance
Micromobility.com’s earnings show a company that brought in $1.5 million in revenue in the third quarter at a net loss of $9.5 million. The balance sheet reveals that the company’s liabilities ($61.7 million) vastly outweigh its assets ($9.4 million).
Stock Performance
The company’s stock closed Monday at $0.44.
Industry Turmoil
Micromobility.com’s delisting comes as the shared micromobility industry faces significant challenges. Superpedestrian, another prominent player, shut down last week and is exploring the sale of its European business. Tier Mobility issued its third round of layoffs this year in November, after selling off Spin to Bird a couple of months earlier.
Conclusion
Micromobility.com’s delisting from Nasdaq marks a significant setback for the company and the shared micromobility industry as a whole. The challenges faced by these companies are a result of increasing competition, regulatory hurdles, and financial struggles.
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