Nikola Corp.’s languishing share price prompted the Nasdaq to threaten the electric truck maker with delisting its stock for the second time in eight months. But don’t look for the company to panic.
The quickest way to remove the threat is a reverse stock split, in which a company issues one new share for a multiple of outstanding shares, usually one for 20 or more. But without positive news driving such an action, Nasdaq scrutiny could continue.
“It doesn’t really change anything, except [it creates] the higher share price,” Nikola CEO Steve Girsky said in a December interview with FreightWaves. [A reverse split] hasn’t come up at the board. It doesn’t mean it won’t come up. When we look at the top five things we’re working on, that’s not one of them.”
180 days to get share price up
Nikola has 180 days, or until July 17, to get its share price above $1 for 10 consecutive trading sessions….
