Micromobility (NASDAQ:MCOM), the renowned electric scooter and e-bike enterprise previously known as Helbiz, has announced a strategic investment in Hopium, a pioneering French start-up with aspirations to revolutionize the automotive industry through the development of a cutting-edge hydrogen-powered car. The investment in Hopium has elicited an immediate and robust response from investors, propelling shares of Micromobility to an impressive surge of 13.5%.
At the time of this publication, micromobility.com inc stock (MCOM) has witnessed a surge.
micromobility.com inc
Current Price: $0.05
Change : +0.01
Change (%): (13.56%)
Volume: 139.3M
Source: Tomorrow Events Market Data
This development follows Micromobility’s recent transformation, including a 1-for-50 reverse stock split earlier this year, coinciding with its rebranding and acquisition of the electric scooter company, Wheels.
Initially, Micromobility directed its efforts towards e-bike rentals, capitalizing on the burgeoning trend spearheaded by industry titans Uber (NASDAQ:UBER) and Lime, which inundated city streets with this eco-friendly mode of transportation. However, the inherent challenges of bike security and user accountability posed formidable obstacles, impeding its intended expansion into defined customer segments such as academic institutions.
In a notable contrast, Hopium distinguishes itself as a forward-thinking high-tech manufacturer, laboring tirelessly on a groundbreaking hydrogen-powered vehicle christened the Machina. Despite encountering financial turbulence, the company remains resolute in its pursuit of innovation. In late July, Hopium sought receivership, a status set to endure for a six-month period, effectively freezing its existing debts. Following this announcement, Hopium experienced an upswing in its stock valuation, reaching 0.15 Euros, though its overall market capitalization hovers at a modest 2.35 million Euros, approximately equivalent to $2.5 million.
The brainchild of former professional race car driver Olivier Lombard, Hopium confronted fiscal constraints earlier this year. As of May, the company divulged that its available cash reserves would suffice only until the end of August, accentuating the formidable financial hurdles it faces. In the fiscal year 2022, Hopium incurred a staggering loss of approximately $27 million, primarily attributed to its workforce expansion efforts.
Atlas Special Opportunities, a subsidiary of Atlas Capital Markets, stands as a steadfast supporter of Hopium, exhibiting unwavering confidence in the company’s innovative potential. Concurrent with the receivership declaration, Atlas bolstered Hopium’s financial standing with an additional 3.5 million Euros in convertible bond financing.
The strategic investment in Hopium has ignited a remarkable surge in Micromobility shares, showcasing the promising synergy between these pioneering entities in the realm of sustainable transportation. As both entities forge ahead, the industry and environmental enthusiasts alike keenly await the groundbreaking developments that will undoubtedly emerge from this promising collaboration.
