Nasdaq Warned EV Manufacturer Arrival of Delisting

Arrival, a manufacturer of commercial electric vehicles, received a warning from the Nasdaq Stock Market due to its stock price trading at an unreasonably low level. In a press release on Thursday, the company stated that Nasdaq informed it at the beginning of the week that it failed to meet the Nasdaq's requirement to trade common shares at or above $1.00 for 30 consecutive working days prior to the notification date. [caption id="attachment_59001" align="aligncenter" width="1600"] image credit: designboom[/caption] Additionally, Arrival made the announcement just a few weeks after it revealed it will restructure its firm for the second time in six months, transferring its attention from the U.K. market to the U.S., where its first electric vans were scheduled to be delivered. Furthermore, although Arrival did not provide any details yet, job layoffs are likely to occur. The company stated that to increase its cash runway, which was $330 million at the end of the third quarter, it will "right-size the organization and cut cash-intensive activities." What's more In accordance with the listing guidelines of Nasdaq, Arrival has 180 days, or until May 1, 2023, to fulfill the minimum bid requirement. In addition, the company just needs to keep its closing bid price at $1.00 per share or higher for at least 10 straight working days to avoid further trouble. Moreover, if the company doesn't increase the price of its shares by May, Nasdaq may grant it an additional 180 days of grace if it does a reverse stock split or stock merge, which reduces the number of existing shares into a smaller number of more expensive shares.

EV-maker Arrival gets delisting warning from Nasdaq https://t.co/L1LxTI5iPL by @rebeccabellan

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On another note, in after-hours trading on Thursday, Arrival's stock was trading at $0.69. Additionally, in March of last year, the EV company became public thanks to a $660 million special purpose acquisition agreement with CIIG Merger. However, Arrival's share price gradually decreased from its opening price of $22 to its current level. Furthermore, since its launch, the business has faced numerous challenges, including manufacturing delays, a class action lawsuit against it, and massive layoffs. Arrival's micro-factory in Bicester, England, ultimately produced its first electric van at the beginning of October. But it's unclear whether Arrival will keep making cars in Bicester. The company also declared its intention to start a second factory in Charlotte, North Carolina, the following year.