Written by Cláudio Afonso | LinkedIn | X
The electric truck startup Workhorse Group, which has been fighting for survival, has announced on Wednesday that the recent reverse stock split allowed the stock to comply with the Nasdaq listing rules.
The company received formal notification from Nasdaq confirming that the it has regained compliance with the minimum bid price requirement of $1.00 per share.
Last September, Nasdaq had notified Workhorse that the closing bid price for its common stock had remained below the minimum $1.00 threshold for 30 consecutive trading days, resulting in non-compliance with Nasdaq’s listing requirements.
Aiming to maintain its stock above the $1 threshold, the company implemented a 1-for-20 reverse stock split two weeks ago — in mid June.
On Wednesday, the shares closed at $1.36 per share as year to date losses extend to 81 percent.
Both Nikola and Workhorse were recently informed of their impending removal from the Russell 3000 Index, as per the preliminary list of additions and deletions posted by FTSE Russell.
The reverse stock split decision was made following approval from Workhorse’s stockholders at the 2024 Annual Meeting in mid-May.
Shareholders had authorized the Board of Directors to implement a reverse stock split within a ratio range of 1-for-10 to 1-for-20, with the Board opting for the maximum ratio.
In its recent first-quarter earnings report, Workhorse revealed $1.3 million in sales, down from $1.7 million in the same period last year, primarily due to decreased sales of its W4 CC vehicles. The company’s net loss for the quarter was $29.2 million, compared to $25.0 million in the same quarter last year.
As of the end of the first quarter, Workhorse reported having $6.7 million in cash and cash equivalents, $1.8 million in accounts receivable, $49.9 million in net inventory, and $14.2 million in accounts payable.
Written by Cláudio Afonso | LinkedIn | X
