Lilium N.V., an aircraft manufacturing company, disclosed on Friday that it has received a notice from Nasdaq regarding non-compliance with the stock exchange's minimum bid price rule. As of the last 30 consecutive business days, from May 24 to July 9, 2024, Lilium's Class A shares have been trading below the required minimum bid price of $1.00 per share.
The company, which is listed under the ticker symbol NASDAQ:LILM, now has until January 7, 2025, to address this issue and bring its share price back above the $1.00 threshold. To regain compliance, Lilium's share price must close at or above this level for at least 10 consecutive business days.
Lilium's business operations remain unaffected by this notice, and its shares will continue to trade on the Nasdaq. The company is considering various options to resolve the issue, including a potential reverse stock split of its Class A shares.
This announcement follows the company's recent filings with the U.S. Securities and Exchange Commission (SEC), where it acknowledged the risk factors that could impact its business, as detailed in its Annual Report on Form 20-F for the year ended December 31, 2023.
Lilium's forward-looking statements suggest that while they are exploring options to regain compliance, there is no assurance of the outcome. The company has not indicated any immediate plans for a reverse stock split, but it remains one of the possibilities being evaluated.
Investors and stakeholders are advised that this report on Form 6-K, excluding Exhibit 99.1, has been incorporated into the company's registration statements filed with the SEC, including those on Form F-3 and Form S-8.
The information in this article is based on Lilium N.V.'s recent SEC filing and is presented without any speculation on potential outcomes or the broader impact on the industry.
In other recent news, Lilium N.V., the electric aircraft manufacturer, has reported significant advancements in its operations. The company successfully completed a major test of its electric jet propulsion unit, marking a crucial step towards its goal of zero-emission regional air mobility. Furthermore, Lilium reported a 53% surge in its Q1/24 cash burn, reaching €94.7 million due to payments made to aerospace suppliers. Concurrently, the company managed to secure $114 million in funding to support its operations and upcoming first manned flight test.
Canaccord Genuity has maintained its Buy rating on Lilium's shares, revising the stock price target to $2.00. In a strategic move, Lilium established its Asia-Pacific regional headquarters in China's Bao'an District, indicating a plan to penetrate the Chinese and Asia-Pacific markets. Another significant development includes Lilium's partnership with UrbanV and Aéroports de la Côte d’Azur to establish a network of vertiports across the French Riviera by 2026.
These are the recent developments for Lilium N.V., a company that continues to make strides in its mission to create a sustainable and accessible high-speed transportation system using the all-electric Lilium Jet.
InvestingPro Insights
As Lilium N.V. navigates the challenges of meeting Nasdaq's minimum bid price rule, investors may find value in examining the company's real-time financial metrics and analyst insights. According to InvestingPro data, Lilium's market capitalization stands at $603.6 million, with a Price / Book ratio for the last twelve months as of Q4 2023 at 14.86. This high Price / Book multiple may be a point of consideration for value-focused investors. Additionally, despite a significant return over the last week of 9.6%, the company's stock price has experienced a considerable decline year-to-date, with a total return of -20.34%. This volatility is reflected in the Price % of 52 Week High, currently at 67.02%.
Turning to InvestingPro Tips, it's worth noting that Lilium holds more cash than debt on its balance sheet, which could provide some financial flexibility. However, the company is quickly burning through cash and short-term obligations exceed liquid assets, which could raise concerns about near-term financial health. For those interested in a deeper dive, there are additional InvestingPro Tips available that provide further analysis on Lilium's financial state and market performance. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for access to these valuable insights.
Investors considering Lilium's potential for turnaround or continued challenges can find a comprehensive suite of tools and data points on InvestingPro, including 11 additional tips that could help in making informed decisions.
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