VANCOUVER - Vicinity Motor Corp (NASDAQ:VEV)(TSXV:VMC), a commercial electric vehicle manufacturer, has been notified by the Nasdaq Listing Qualifications Department of its impending delisting due to non-compliance with the minimum bid price requirement. The company's common shares have been trading below the $1 threshold, violating Nasdaq Listing Rule 5550(a)(2).
The notification follows the company's recent entry into receivership, as ordered by the Supreme Court of British Columbia. Consequently, Nasdaq has also cited additional listing rules—5101, 5110(b), and IM-5101-1—as grounds for delisting. Vicinity Motor Corp will not contest the delisting determination.
Trading of Vicinity's common shares is slated for suspension at market open on October 31, 2024. The formal delisting will proceed with the filing of a Form 25-NSE with the Securities and Exchange Commission, which will remove Vicinity Motor Corp from the Nasdaq Capital Market.
The company's entry into receivership and the subsequent Nasdaq delisting are significant developments for shareholders and potential investors. Vicinity has disclosed forward-looking statements regarding its expectations surrounding the receivership process and its operational continuity. However, these statements carry risks and uncertainties, and actual outcomes could materially differ from what has been anticipated.
Investors should note that forward-looking information is based on projections as of the date they are made, and the company does not undertake to update these projections except as legally required. This news is based on a press release statement from Vicinity Motor Corp.
In other recent news, Vicinity Motor Corp. has been navigating a series of financial developments. The Royal Bank of Canada has indicated its intention to file for a receivership order against the company, with the company's auditor, PricewaterhouseCoopers LLP, also resigning. Concurrently, the company is under a management cease trade order due to delayed interim financial filings, which are expected to be completed soon.
Despite these challenges, Vicinity Motor Corp. reported a 400% surge in Q1 2024 revenues, largely attributed to the deliveries of its electric trucks and clean diesel buses. The company's VMC 1200 electric truck has received certification as a zero-emission vehicle from the California Air Resources Board, enabling sales across all U.S. states. Furthermore, Vicinity Motor Corp's customers are now eligible for significant tax credits for purchasing its electric vehicles, following the company's approval as a "qualified manufacturer" by the United States Internal Revenue Service.
These recent developments highlight the company's ongoing efforts to navigate its financial challenges while continuing to make strides in the commercial electric vehicle sector. The company's future prospects, including the potential impact of a receivership order and the cessation of stock trading, remain highly uncertain. Investors are advised to monitor the situation closely as events unfold.
InvestingPro Insights
The recent developments at Vicinity Motor Corp (NASDAQ:VEV) are reflected in the company's financial metrics and market performance. According to InvestingPro data, VEV's market capitalization has dwindled to a mere $2.5 million, underscoring the severity of its financial situation. The company's stock price has plummeted, with a staggering 94.06% decline over the past year, and it's currently trading at just 5.26% of its 52-week high.
InvestingPro Tips highlight that VEV operates with a significant debt burden and may have trouble making interest payments, which aligns with the company's entry into receivership. The stock's recent performance has been particularly poor, with a 28.67% drop in the last week alone, indicating the market's negative reaction to the delisting news.
Despite these challenges, it's worth noting that VEV has shown substantial revenue growth, with a 399.58% increase in quarterly revenue as of Q1 2024. However, this growth hasn't translated into profitability, as the company reported an operating loss of $8.05 million in the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 19 additional tips on VEV, providing deeper insights into the company's financial health and market position.
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