Lightning eMotors seeks reverse stock split to remain on NYSE
LOVELAND — In an effort to boost its stock price above $1 and maintain its listing on the New York Stock Exchange, zero-emission-vehicle provider Lightning eMotors Inc. (NYSE: ZEV) is asking its shareholders to approve a reverse stock split.
Leaders with the company — which has been publicly traded only since May 2021 when it merged with a special-purpose acquisition company — are convening a shareholder meeting on Feb. 7 to vote on a move that could see as few as two shares or as many as 20 shares rolled into a single share.
In mid-December, following months of poor market performance by Lightning eMotors’ stock, the U.S. Securities and Exchange Commission warned the company that it had six months to increase its stock price above the $1 threshold or else it will be delisted.
When that warning was issued on Dec. 19, Lightning’s stock price was 45 cents per share, down nearly 93% over the past year. On Wednesday, Lightning began trading at 30 cents per share.
NYSE requires that companies with stocks that dip below the $1 threshold maintain a minimum average closing share price of $1 over 30 consecutive trading days within six months of being notified in order to maintain listing.
“The company has notified the NYSE of its intent to cure the deficiency,” Lightning said when the NYSE warning was issued. “… The company informed the NYSE that it intends to regain compliance and is considering all available options that are in the best interests of the company and its shareholders, including a reverse stock split of its common stock.”
Wall Street has looked down on Lightning despite higher year-over-year sales, lower losses and better production in the third quarter of 2022.