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Lordstown Motors gets Nasdaq delisting notice, explores reverse stock split

Published 04/20/2023, 09:06 AM
Updated 04/20/2023, 05:06 PM
© Reuters. FILE PHOTO: A Lordstown Motors sign is seen outside the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook

(Reuters) - Lordstown Motors Corp said on Thursday it has received a delisting notice from Nasdaq and is evaluating actions including a reverse stock split to meet the minimum bid price requirement set by the exchange.

The company received the notice because the closing bid price for the electric-truck maker's class A common stock fell below the minimum required price of $1 per share for 30 straight sessions, according to a regulatory filing.

Like other EV companies, Lordstown has been plagued with surging costs and supply challenges, and missed the delivery target for its Endurance pickup truck. Its shares have lost over 50% of their value so far this year.

© Reuters. FILE PHOTO: A Lordstown Motors sign is seen outside the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook

Lordstown had put in a proposal on April 11 for its annual shareholder meeting, slated for May 22, to get an approval to carry out a reverse stock split of its class A common stock in the ratio ranging from one-for-three to one-for-fifteen.

The notice has no immediate impact on the company's stock listing and Lordstown Motors will have until Oct. 16 to regain compliance with Nasdaq's rules.

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