Electric truck maker Nikola may do reverse stock split to comply with Nasdaq rules

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.