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Lordstown receives delisting notice, considers reverse stock split
© Reuters. Lordstown (RIDE) receives delisting notice, considers reverse stock split
By Michael Elkins
Lordstown Motors (NASDAQ:) said Thursday that the electric vehicle company has received a delisting notice from Nasdaq and is evaluating actions including a reverse stock split to meet the minimum bid price requirement set by the exchange.
The EV startup received the notice because the closing bid price for the company’s class A common stock fell below the minimum required price of $1 per share for 30 straight sessions, according to a regulatory filing.
Lordstown had put in a proposal on April 11 for its annual shareholder meeting, slated for May 22, to get an approval to carry out a reverse stock split of its class A common stock in the ratio ranging from one-for-three to one-for-fifteen.
The notice has no immediate impact on the company’s stock listing and Lordstown Motors will have until Oct. 16 to regain compliance with Nasdaq’s rules.
Shares of RIDE are down 2.39% in morning trading on Thursday.
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