Electric vehicle manufacturer Workhorse Group Inc (NASDAQ:WKHS). has been notified by the Nasdaq Stock Market that it is non-compliant with the exchange's minimum bid price requirement. The company's common stock has been trading below the $1.00 threshold for 30 consecutive days, triggering a warning from Nasdaq.
The Ohio-based company, listed under the ticker NASDAQ:WKHS, received the notice on October 2, 2024, which does not immediately affect its listing status or SEC reporting obligations. Workhorse has been given 180 days, until March 31, 2025, to regain compliance by ensuring its stock closes at or above $1.00 for at least ten consecutive trading days.
If Workhorse fails to meet the requirement by the end of this period, it may be granted an additional 180 days, provided it meets other listing standards and notifies Nasdaq of its intent to resolve the deficiency. The company is exploring options to address the issue, but there is no guarantee of regaining compliance or maintaining other listing requirements.
This development presents potential challenges for Workhorse, as a delisting could significantly impact its ability to raise funds and affect its financial health and operations. The company's management is expected to focus on addressing this compliance issue to avoid the adverse consequences of a Nasdaq delisting.
The information in this article is based on a press release statement from Workhorse Group Inc. and reflects the company's current situation regarding its Nasdaq listing status.
In other recent news, Workhorse Group has secured additional funding totaling $6 million, with $3.4 million from a new financing agreement and $2.6 million through a securities purchase agreement with an institutional investor.
The funding is part of a larger financing strategy, with the potential to raise up to $139 million in convertible notes and accompanying warrants. Concurrently, the company announced the completion and sale of 15 W56 step vans, marking a significant milestone in its operations.
Analyst firm TD Cowen has maintained a Hold rating on Workhorse Group but reduced the stock's price target due to ongoing liquidity concerns and disappointing revenue. The firm cited Q2 sales of $800,000 and a cash balance of $5.3 million as key financials.
In other developments, GreenPower Motor Co Inc. recently detailed executive compensation for the fiscal year ended March 31, 2024. These are recent developments for both Workhorse Group Inc. and GreenPower Motor Co Inc.
InvestingPro Insights
Recent data from InvestingPro sheds light on Workhorse Group's financial challenges, providing context to the company's Nasdaq compliance issues. The company's market capitalization has dwindled to just $17.76 million, reflecting severe investor skepticism. This is further underscored by the stock's precipitous decline, with a one-year price total return of -90.38% as of the latest data.
InvestingPro Tips highlight that Workhorse is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors likely contribute to the stock's poor performance and the risk of delisting. Moreover, the company is "not profitable over the last twelve months," with a concerning gross profit margin of -309.08% for the last twelve months as of Q2 2024.
On a slightly positive note, InvestingPro Tips indicate that "liquid assets exceed short term obligations," which may provide some short-term financial flexibility as the company navigates its compliance challenges. Investors seeking a more comprehensive analysis can access 13 additional InvestingPro Tips for Workhorse Group, offering deeper insights into the company's financial health and market position.
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