Nikola, the struggling electric truck maker, disclosed Thursday in a regulatory filing that Nasdaq may delist it.
Nikola received a delisting warning from the public exchange on May 24 due to its 30-day share price below $1. The company must meet Nasdaq’s minimum price guideline of $1 for ten working days by November 20.
Nikola shares reached $65.90 in 2020 under Trevor Milton, the company’s co-founder and former CEO, who was arrested for federal securities fraud. Instead, shares fell 20% to $0.62.
Nikola is one of many firms that went public via a merger with a special purpose acquisition company and saw its market cap plummet, sometimes to the point of delisting. Lordstown Motors reported delisting this month. Lordstown reversed its stock after the notice and Foxconn agreement failed. Public market capital attracted many mobility startups. In 2021, numerous SPAC equities became meme stocks. Nikola and other SPACs like Arrival, Bird, and Canoo are finally catching up.
Nikola issued more shares to raise funds. It wants shareholders to approve a proposal to raise its common stock. This proposal needs more than 50% of its outstanding shares to approve.