US hydrogen fuel cell truck firm Hyzon could be delisted from the Nasdaq stock exchange after its share price fell below $0.10.
The stock exchange told the company that its shares had closed below $0.10 for 10 consecutive trading days, breaching listing rules and determined to delist its common stock from its capital market.
Hyzon has said it intends to appeal the decision and will submit a plan to Nasdaq’s listing qualification staff to regain compliance with its rules by a reserve stock split.
A reverse stock split sees a company reduce the number of its outstanding shares by consolidating them into a smaller number, while also increasing the share price proportionally.
The plan will need approval by Hyzon’s shareholders, however, with its annual meeting scheduled to take place today (August 21).
If the plan is rejected, the delisting could see the company slip into penny stock status – a high-risk and low-liquidity stock, usually traded over the counter through decentralised networks – and potentially making it harder to attract investors.
The delisting comes after Hyzon was given 180 days to bring its share price above $1 on January 23, 2024. However, the firm was granted another 180 days, bringing the deadline to January 2025.
Hyzon has faced a long period of financial turmoil. Between Q2 2022 and Q1 2023, the firm was out of compliance with listing rules after not posting its results while it investigated its revenue recognition for deliveries in China and Europe.
Having found incorrect recognition for the deliveries of numerous trucks across the region, Hyzon regained compliance with Nasdaq rules, emerging from the ashes with a new executive team and a $25m US Securities and Exchange (SEC) penalty.
Read more: The year that rocked and reshaped Hyzon Motors
Despite setting out with promises of focusing on hydrogen fuel cell development and a streamlined truck lineup, the company continued to face its woes.
In June it said it would back out of Dutch and Australian operations to refocus on North America, despite having launched an Australian vehicle platform just months earlier. The move would see it incur $17m of exit costs.
Read more: Hyzon faces $17m exit costs from EU and Australian hydrogen truck markets
Its Q2 2024 finances reported a revenue of just $0.3m.
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