Helbiz, a shared micro-mobility startup, will reverse its stock to comply with the Nasdaq, which delisted it last July for trading too low.
Helbiz is rebranding to Micromobility.com Inc. to market itself as a micro-mobility brand offering retail, rentals, shared micro-mobility, and sports streaming.
The redesign coincides with the debut of a new brick-and-mortar retail enterprise that will open locations around the U.S. in 60 days, starting in SoHo, New York City. Nowadays, an e-commerce site sells a few e-scooters, e-bikes, helmets, and water bottles.
From Friday, Micromobility.com’s shares will trade as MCOM and its warrants under MCOMW due to the name change. Helbiz finished Thursday at $0.12, down 4.5%, and fell as high as 20% in after-hours trading.
Helbiz Micromobility.com didn’t answer TechCrunch’s many queries. How can the corporation afford even one brick-and-mortar store with its tiny financial balance by the end of 2022? When will the firm comply with Nasdaq stock price requirements? Have they addressed the second Nasdaq delisting warning regarding not having an audit committee with at least three independent directors? Should I always write Micromobility.com?
Funding a physical or e-commerce shop is an issue. Helbiz ended the year with $429,000 in cash and equivalents. However, the corporation lost $82 million and made $15.5 million.
Helbiz’s actual outlets’ cars are unknown. Micromobility.com’s new website offers three e-scooters and three e-bikes at different pricing. The HelbizOne and two Okai Neon IIs are the company’s retail e-scooters. Nevertheless, the white HelbizOne and Neon II are unavailable. Pre-order them for Q4 2023 and April 30 delivery.
Micromobility.com sells two Noko urban e-bikes and the Wheels One (which, to us, is more of a seated scooter). The website says the Wheels One will be available for long-term subscription rentals at roughly $130 per month, but the renting link is dead.
Helbiz purchased Wheels Labs, a micro-mobility firm that rents or shares seated e-scooters, last November. Helbiz claimed the deal would treble its yearly revenue and boost profitability. Helbiz bought Italian shared e-moped manufacturer MiniMoto before that. Helbiz plans to rebrand as a “micro-mobility consolidator in anticipation of potential M&A transactions.”
Helbiz, Wheels, and MiniMoto will offer shared micro-mobility services.
Reverse split “The reverse stock split is primarily designed to bring the Company into conformity with the Nasdaq Capital Market’s minimum bid price requirement and will make the bid price of our Common Stock more appealing to investors,” stated Micromobility.com CEO Salvatore Palella.
Helbiz issued a delisting warning in July after 30 consecutive trading days below the Nasdaq’s minimum bid price of $1 per share.
According to the corporation, the reverse stock split will be 1-for-50 common stock, with a par value of $0.00001. This reduces the number of common stock shares from 278.5 million to 5.6 million and class B common stock from 14 million to 284,518. The business said Friday’s market opening would implement the modifications.
Micromobility.com says each stockholder’s proportionate ownership stake in the firm and proportional voting power will stay nearly identical, save for small modifications from rounding fractional shares into whole shares.
According to an SEC filing, Palella is the company’s largest stakeholder, with 37.2% voting power. The company’s common stock’s dual-class structure gives Palella voting power, limiting investors’ impact on significant events like a change of ownership. Palella controls things like director elections, mergers, and consolidations because of how votes per share are constructed.