Micromobility.com, formerly known as Helbiz, was delisted from Nasdaq on Monday due to noncompliance with the stock exchange’s listing rules, as stated in a regulatory filing.
“Competitor Bird, the only other shared micromobility company to enter the public markets, was also delisted from Nasdaq in September.”
As a result, the company’s common stock and warrants were suspended from trading at the start of business on Wednesday.
Micromobility.com was removed from the stock market because it failed to maintain a share price of at least $1 and did not meet Nasdaq’s minimum stockholders’ equity requirement for continued listing.
The company’s stock has struggled to meet these compliance requirements since going public through a special purpose acquisition merger in 2021. In an effort to regain compliance, the company implemented a reverse stock split in March, which resulted in temporary gains. However, the stock price declined again shortly after. Micromobility.com then announced its intention to seek approval for another reverse split at a special meeting of stockholders scheduled for January 2024, but this meeting has been postponed along with the potential reverse split.
In a filing, Micromobility.com stated that it will seek to have its common stock and warrants quoted for trading over-the-counter. The company’s decision follows in the footsteps of Bird, who also moved its stock to OTC markets after being delisted in September. Recently, Bird has had to implement layoffs and its third-quarter earnings indicate potential financial struggles, possibly leading to bankruptcy.
Micromobility.com assures that the transition to OTC markets will not affect the company’s operations. The startup recently rebranded to focus on the retail market, with the opening of its first physical store in SoHo, New York City in September. The company also has an e-commerce site featuring a limited selection of e-scooters, e-bikes, helmets, and water bottles.
The third-quarter earnings report for Micromobility.com shows a revenue of $1.5 million with a net loss of $9.5 million. The balance sheet reveals that the company’s liabilities of $61.7 million greatly outweigh its assets of $9.4 million.
On Monday, the stock closed at $0.44.
Micromobility.com’s delisting comes at a time of turmoil for the shared micromobility industry. Superpedestrian announced shutdown last week and is currently considering the sale of its European business. Similarly, Tier Mobility had to lay off employees for the third time this year in November, shortly after selling Spin to Bird.