Canoo Inc. has transferred its securities from the Nasdaq to a lower tier of the exchange after falling out of compliance with listing requirements. The transfer to the Nasdaq Capital Market was completed at the opening bell on Monday morning. Canoo will continue to trade under the “GOEV” ticker.
According to a U.S. Securities and Exchange Commission filing, Canoo ran aground with compliance issues earlier this year with the $1 minimum bid price requirement to list on the Nasdaq. Canoo was given 180 calendar days, or until Sept. 25, to regain compliance, the filing said.
As of Tuesday morning, the company’s stock was trading at 45 cents per share. Canoo debuted on the Nasdaq in December 2020 at $22.82 per share following its merger with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company.
Canoo applied for the transfer to the Nasdaq Capital Market on Aug. 23 and received approval last Thursday. The transfer gives the company another 180 days to regain compliance. Canoo may have to conduct a reverse stock split to meet listing requirements, according to an SEC filing.
If “at any time during the allotted compliance period, the closing bid price of [Canoo’s] common stock is at least $1 per share for at least a minimum of 10 consecutive days, Nasdaq will provide the company with written confirmation of compliance and the matter will be closed,” the filing said.
Canoo could be delisted if it doesn’t meet the minimum price requirement. If that happens, the company would have the option to appeal to a Nasdaq hearings panel.
Canoo has been burning through cash and last year warned investors that there was “substantial doubt” about whether it could stay in business. The company posted a $70.9 million net loss in the second quarter, an improvement over the loss it reported in the same quarter in 2022.
The company also had plans to move its headquarters to Bentonville, Arkansas.
CEO Tony Aquila has said the company has $2.8 billion worth of orders in the pipeline.
The SEC recently fined Canoo $1.5 million over misleading revenue projections and temporarily banned the company’s former CEO and former CFO from holding board positions at any other public companies.
