In a significant development for Micromobility.com Inc, a frontrunner in pioneering urban transportation solutions, the company received a written notice from The Nasdaq Stock Market LLC’s Listing Qualifications Department on December 18, 2023. The notice conveyed the imminent suspension of trading for Micromobility.com’s common stock and warrants, slated to take effect from the opening of business on December 20, 2023. Consequently, the company has postponed a special stockholders’ meeting initially scheduled for January 2024, where it intended to seek approval for an additional reverse split.
Following the announcement, Micromobility.com’s stock, which closed Monday’s trading at $0.44, experienced a notable decline, opening Tuesday’s session at $0.23.
At the time of this publication, micromobility.com inc stock (MCOM) has witnessed a decline.
micromobility.com inc
Current Price: $0.24
Change : -0.21
Change (%): (-47.18%)
Volume: 5.2M
Source: Tomorrow Events Market Data
The decision to defer the special meeting allows Micromobility.com’s board of directors the necessary time to reassess the company’s corporate governance and operational strategy. The board asserts that stockholders need not take any immediate action in light of these developments.
The Nasdaq’s delisting decision was triggered by Micromobility.com’s failure to maintain a minimum closing bid price of $1.00 per share, as mandated by Nasdaq Listing Rule 5550(a)(2). Additionally, the company fell short of complying with Nasdaq’s minimum stockholders’ equity requirement for continued listing or any of the alternative requirements in Listing Rule 5550(b)(2). Consequently, the Nasdaq Hearings Panel has decided to delist the company’s shares and warrants from the exchange. The formal delisting process will be completed with the filing of a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (SEC), following the expiration of relevant appeal periods.
Micromobility.com has a window of 15 days from the date of the Delisting Letter to request a review of the decision by the Nasdaq Listing and Hearing Review Council. The company is currently evaluating whether such an appeal is warranted, considering factors such as the likelihood of regaining and maintaining compliance with continued listing requirements and the comparative benefits of remaining on Nasdaq versus the substantial costs involved.
Anticipating a significant increase in expenses related to maintaining its Nasdaq listing, including compliance requirements under the Sarbanes-Oxley Act (SOX) and ESG initiatives, Micromobility.com sees potential opportunities to streamline operations through delisting and deregistration. The company envisions benefits such as lower operating costs, reduced management time commitment, and a simplified corporate governance structure. The decision to appeal Nasdaq’s ruling aligns with the company’s previously communicated cost-saving measures. However, Micromobility.com acknowledges that delisting and the cessation of trading on Nasdaq could have a material adverse effect on the liquidity and trading price of its common shares.
Taking proactive steps, Micromobility.com has initiated the process of transferring the quotation of its common stock and warrants to one of the over-the-counter markets operated by OTC Markets Group Inc. The company’s common stock and warrants will retain the symbols “MCOM” and “MCOMW,” and they are expected to initially trade on the Pink Current Information tier concurrently with the trading suspension.
Assuring stakeholders, Micromobility.com emphasizes that the transition to OTC markets will not disrupt its commitment to regular business operations. The company will remain subject to the public reporting requirements of the SEC post-transfer. Micromobility.com intends to keep shareholders informed and take necessary actions to facilitate the quoting of its common stock and warrants in the OTC market, ensuring the existence of a trading market for these securities.
