Helbiz stock tumbles on reverse fork, rebranding to Micromobility.com
Shared micro-mobility company Helbiz said it would perform a reverse stock split in an effort to return to Nasdaq compliance, which issued the ban. Announcement of delisting last July because Helbiz’s stock is trading so low.
Helbiz also rebranded to Micromobility.com Inc. to position itself as a micro-mobile brand offering retail, rental, shared micro-mobility and *check note* sports streaming services.
The rebranding comes along with the launch of a new brick-and-mortar retail business, which includes the establishment of physical stores across the United States, starting with the first store in SoHo, New York City during the year. next 60 days. There is also a e-commerce site available today, including a small selection of e-scooters, e-bikes, helmets and water bottles.
Due to the name change, shares of Micromobility.com will begin trading under the new ticker symbol MCOM and its warrants under MCOMW starting Friday. Helbiz’s share price closed Thursday at $0.12, down 4.5% and then down as much as 20% after hours of trading.
We have a lot of questions, and
Helbiz Micromobility.com did not respond to TechCrunch’s requests for a response. The most important questions include: How can the company pay for even a brick-and-mortar store with the little cash it has in the bank by the end of 2022? When does the company think it will return to Nasdaq compliance in terms of share prices? they solved another Nasdaq delisting warning about not having an audit committee of at least three independent directors? Do I really have to write Micromobility.com for every future article about this company?
The question of sponsoring a physical store and even an e-commerce store is a real one. As a reminder, Helbiz ended the year with $429,000 in cash and cash equivalents. The company’s revenue was $15.5 million on a net loss of $82 million.
It’s unclear what vehicles Helbiz will sell at its physical stores. From a quick look at the new website, Micromobility.com is offering three models of e-scooters and three models of e-bikes at various price points. On the scooter side, there’s the HelbizOne, which should be the company’s exclusive e-scooter designed for retail, along with a few Okai Neon IIs. However, the white HelbizOne and Neon II are not yet available. They are available for pre-order with an expected delivery time of Q4 2023 and April 30, respectively.
In its e-bike selection, Micromobility.com offers two models from Noko, an Italian brand of urban e-bikes with mid-to-expensive prices, and Wheels One (which to us is really similar to what it’s like). a scooter with more seats). According to the websiteWheels One will also be available for long-term subscription rental for around $130 per month, but as a link to rent now leads nowhere, it’s not clear if that service is currently up and running.
Remember last November Helbiz acquires Wheels Labs, a micromobility company that offers e-scooters with unique seats for shared use or rental. Helbiz said the acquisition would double annual revenue and help turn profitability. Before, Helbiz acquires Italian motorcycle sharing company MiniMoto to capture a fraction of the shared e-motorcycle market. As part of the rebranding process, Helbiz said it hopes to position itself as “a micro-mobility consolidation company ahead of future M&A deals”.
The company will continue to offer shared micromobility services across its three brands — Helbiz, Wheels and MiniMoto.
Reverse stock split
Salvatore Palella, CEO of Micromobility.com, said: “The reverse stock split is primarily intended to help the Company comply with the Nasdaq Capital Markets minimum purchase price requirement and will make the purchase price of the shares available. Our common stock is more attractive to investors.” in a statement.
In July, Helbiz received a delisting warning because Nasdaq requires listed securities to maintain a minimum bid price of $1 per share and the company has stayed below that level for 30 consecutive trading days. next.
According to the company, the reverse stock split will be done at a rate of 1 in 50 common shares, par value of $0.00001. This means that the total number of outstanding shares of common stock will decrease from 278.5 million to approximately 5.6 million and the total number of class B ordinary shares outstanding will decrease from approximately 14 million to 284,518. The company said the changes will take effect when markets open on Friday.
Micromobility.com says each shareholder’s ownership percentage in the company and proportional voting rights will remain virtually unchanged, except for minor changes and adjustments from rounding odd shares to whole shares. whole.
For what it’s worth, Palella is the company’s largest shareholder, with about 37.2% of voting rights controlled, according to a report. SEC filings. Additionally, the company’s two-tiered structure of common stock centralizes voting rights with Palella, which limits an investor’s ability to influence the outcome of important transactions such as a change of control. . Because of the way votes per share are structured, Palella holds about 60% of the voting rights on the company’s equity shares and therefore has control over things like election of directors and any mergers or acquisitions. most.