VANCOUVER, BC - Vicinity Motor Corp. (NASDAQ:VEV), a supplier of commercial electric vehicles in North America, has been granted an additional period to comply with Nasdaq's minimum bid price requirement, the company announced on Wednesday. The Nasdaq Stock Market LLC provided Vicinity with a 180-day extension, following the initial compliance period that expired on April 22, 2024.
The company, which trades under the symbol "VEV," initially received notice on October 24, 2023, from Nasdaq indicating that it did not meet the US$1.00 minimum bid price per share requirement over 30 consecutive business days. With the extension, Vicinity now has until October 21, 2024, to achieve compliance. To meet the requirement, the company's shares must maintain a closing bid price of at least US$1.00 per share for a minimum of 10 consecutive business days.
Vicinity Motor Corp.'s listing on The Nasdaq Capital Market remains active, and trading of its shares continues unaffected by this notice. The company has stated its intention to monitor its share price closely during this extended period and to take reasonable actions to regain compliance.
Vicinity Motor Corp. specializes in electric vehicles, including buses and the VMC 1200 electric truck, for public and commercial use. It operates through a dealer network and partnerships with manufacturing entities to serve the transit and industrial markets.
This news is based on a press release statement from Vicinity Motor Corp.
InvestingPro Insights
Vicinity Motor Corp. (NASDAQ:VEV) has been navigating through a challenging financial landscape as evidenced by the data and tips provided by InvestingPro. The company's market capitalization stands at a modest $31.09 million, reflecting the size and scale of its operations within the commercial electric vehicle sector. Despite a recent extension to meet Nasdaq's minimum bid price requirement, VEV's stock has been characterized by significant price volatility, with a 24.33% decline over the past three months, aligning with the InvestingPro Tips that highlight the stock's high volatility.
Moreover, the company's financial health raises concerns, as indicated by a negative price-to-earnings (P/E) ratio of -1.91, which worsens when adjusted for the last twelve months as of Q4 2023 to -2.43. This metric underscores the company's lack of profitability, which is further confirmed by an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. In addition, a gross profit margin of 11.21% for the same period suggests that Vicinity Motor Corp. struggles with weak gross profit margins, potentially impacting its ability to generate sufficient income to cover its operating costs and debt obligations.
On a more positive note, the company has experienced a substantial quarterly revenue growth of 150.27% in Q4 2023, which aligns with an InvestingPro Tip that analysts anticipate sales growth in the current year. This could be a silver lining for investors looking for signs of business expansion and market penetration.
Investors considering Vicinity Motor Corp. as a potential addition to their portfolios can find more in-depth analysis and additional InvestingPro Tips by visiting https://www.investing.com/pro/VEV. There are currently 11 additional tips available on InvestingPro, offering a comprehensive view of the company's financial health and stock performance. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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