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Wallbox faces NYSE non-compliance over share price

Published 12/20/2024, 06:06 AM
WBX
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BARCELONA - Wallbox N.V. (NYSE:WBX), a leading provider of electric vehicle (EV) charging and energy management solutions, has been notified of non-compliance with New York Stock Exchange (NYSE) continued listing standards. The notice, received on November 21, 2024, indicates that Wallbox's Class A ordinary shares did not maintain the required minimum average closing price of $1.00 over a consecutive 30 trading-day period. Currently trading at $0.48, the stock has declined nearly 77% over the past year, according to InvestingPro data, which suggests the stock is currently trading below its Fair Value.

Despite the deficiency, the company's shares will remain listed on the NYSE as Wallbox aims to address the issue. The company has six months from the date of the notice to regain compliance, which can be achieved if Wallbox's closing share price and 30 trading-day average closing share price both meet or exceed $1.00 on the last trading day of any calendar month within the cure period. InvestingPro analysis reveals concerning financial health indicators, with an overall Financial Health Score of 1.56, labeled as 'WEAK'. Subscribers can access 16 additional ProTips and comprehensive analysis through the Pro Research Report.

Wallbox has conveyed its intention to explore all possible alternatives to correct the share price deficiency and comply with the NYSE's standards. The company emphasizes that its business operations, including the provision of innovative EV charging and energy management solutions, continue unaffected. The focus remains on sustaining business growth and delivering value to stakeholders. However, InvestingPro data indicates significant challenges, including a debt burden of $272.92 million and negative EBITDA of -$88.43 million in the last twelve months.

Wallbox, founded in 2015 and headquartered in Barcelona, operates globally, offering a range of charging and energy management products in over 115 countries. The company's strategy involves not just EV charging but also empowering users to manage their energy consumption, save costs, and promote sustainability. Despite current challenges, the company achieved revenue of $179.58 million in the last twelve months, with a gross profit margin of 35.68%.

The company's announcement includes forward-looking statements under the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties that could cause actual results to differ materially from projected outcomes. Wallbox's ability to regain compliance with NYSE standards within the designated timeframe is subject to these risks.

This news article is based on a press release statement from Wallbox and does not include any promotional content or endorsements.

In other recent news, Wallbox reported a 7% year-over-year increase in revenue for the third quarter of 2024, reaching €34.7 million. Despite facing a challenging European market and a one-off revenue charge, the company's year-to-date revenue stood at €126 million, marking a 26% increase from the previous year. This performance significantly outpaced the overall EV market's 3% growth. Wallbox also reported a gross margin of 23%, impacted by inventory provisions, with future margins targeted between 38% and 40%.

In addition to these earnings and revenue results, Canaccord Genuity revised its price target for Wallbox, lowering it to $1.50 from the previous $3.25. Despite this revision, the firm maintained a Buy rating on the stock, indicating confidence in the company's growth potential. The firm's analysis suggests that Wallbox could see improved performance as market conditions for EVs improve.

Wallbox anticipates Q4 revenue to range from €40 million to €45 million, with adjusted EBITDA losses estimated at €7 million to €10 million. The company remains optimistic about long-term growth in the EV market, focusing on cost management and strategic partnerships for profitability. In other company news, Wallbox has appointed Beatriz Gonzalez as the new Non-Executive Chairman of the Board. These are the recent developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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