Nasdaq has warned Canoo Inc. (Nasdaq: GOEV), the electric vehicle maker that's moving its headquarters to Bentonville, that it could be delisted from the exchange.
The closing price for the company’s common stock fell below the $1 per share minimum for 30 consecutive business days on March 24. Canoo has been given 180 calendar days, or until Sept. 25, to regain compliance.
Canoo disclosed the news in an SEC filing on March 27.
The company debuted on the Nasdaq in December 2020 following its merger with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company. Shares opened at a price of $22.82.
Tuesday morning, shares were trading at around 53 cents.
Over the past year, shares have fallen about 90% as the company burned through cash and warned investors that there was "substantial doubt" about whether it could stay in business.
The company sold $52.5 million in discounted stock in February to raise cash. CEO Tony Aquila said in a quarterly earnings call last month that Canoo is shifting its funding approach to "make more efficient use of capital."
If Canoo's stock does not meet the Nasdaq's $1 minimum price requirement by Sept. 25, the company may be eligible for an additional 180-day grace period. To qualify, Canoo must apply to transfer the listing of its common stock to The Nasdaq Capital Market, the lowest tier of the exchange. That tier has less stringent listing requirements, and generally includes early-stage companies that are focused on raising cash.
The company would have the right to appeal a decision to delist its common stock.
