Nikola, the struggling electric truck developer, disclosed Thursday in a regulatory filing that Nasdaq may delist it.
Nikola received a delisting notice from the public exchange on May 24 due to its 30-day share price below $1. The company must meet Nasdaq’s minimum price rule of $1 for 10 business days by November 20.
Nikola’s co-founder and former CEO, Trevor Milton, was indicted for federal securities fraud in 2020, when Nikola shares reached $65.90. Shares fell 20% to $0.62.
Nikola is one of many companies 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 deal failed. Public market capital attracted many mobility companies. In 2021, many SPAC stocks 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 increase its common stock. This proposal needs more than 50% of its outstanding shares to be approved.