Stock Market News
Electric truck maker Nikola may do reverse stock split to comply with Nasdaq rules
2023.06.01 17:59
© Reuters. FILE PHOTO: U.S. Nikola’s logo is pictured at an event held to present CNH’s new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin, Italy, December 3, 2019. REUTERS/Massimo Pinca
SAN FRANCISCO (Reuters) – Electric truck maker Nikola Corp may execute a reverse stock split if its stock does not comply with Nasdaq’s minimum bid price requirements within a certain period, its chief executive Michael Lohscheller said on Thursday.
A reverse stock split consolidates the number of existing shares into fewer shares.
Nikola, which closed at about 57 cents on Thursday, said last week it received a delisting notice from the stock exchange.
Nasdaq requires shares trade above $1 and sends a notice if one trades below that mark for 30 consecutive business days.
Lohscheller’s comments were made in a webcast to answer shareholder questions.
