Helbiz stock tumbles on reverse split, rebrand to Micromobility.com

Shared micromobility institution Helbiz said it volition bash a reverse banal divided successful an effort to get backmost into compliance with the Nasdaq, which issued a delisting announcement past July due to the fact that Helbiz’s banal was trading excessively low.

Helbiz is besides rebranding to Micromobility.com Inc. successful bid to presumption itself arsenic a micromobility marque that offers retail, rentals, shared micromobility and *checks notes* sports streaming services.

The rebrand comes alongside the motorboat of a caller brick-and-mortar retail business, which volition see the mounting up of carnal stores crossed the U.S., starting with its archetypal store successful SoHo, New York City successful the adjacent 60 days. There’s besides an e-commerce site disposable today, featuring a tiny enactment of e-scooters, e-bikes, helmets and h2o bottles.

Due to the sanction change, Micromobility.com’s banal volition commencement trading nether the caller ticker awesome MCOM and its warrants nether MCOMW starting Friday. Helbiz’s banal terms closed Thursday astatine $0.12, down 4.5%, and past tumbled arsenic overmuch arsenic 20% successful aft hours trading.

We person a batch of questions, and Helbiz Micromobility.com didn’t respond to TechCrunch’s requests for answers. Top of caput questions include: How is the institution paying for adjacent 1 brick-and-mortar store with the meager currency it had successful the slope astatine the extremity of 2022? When does the institution deliberation it’ll beryllium backmost successful compliance with the Nasdaq successful regards to banal price? Have they addressed the other Nasdaq delisting warning about nonaccomplishment to person an audit committee of astatine slightest 3 autarkic directors? Do I truly person to constitute retired Micromobility.com for each aboriginal nonfiction astir this company?

That question astir backing a carnal store, and adjacent an e-commerce store, is simply a existent one. As a reminder, Helbiz closed retired the twelvemonth with $429,000 successful currency and currency equivalents. The company’s gross was $15.5 cardinal connected apical of a $82 cardinal nett loss.

Ok, Micromobility.com

It’s not wide what vehicles Helbiz volition merchantability astatine its carnal stores. From a speedy peruse of the caller website, Micromobility.com is offering up 3 e-scooter models and 3 e-bike models arsenic a scope of prices. On the scooter side, there’s the HelbizOne, which indispensable beryllium the company’s proprietary e-scooter designed for retail, positive a mates of Okai Neon IIs. The HelbizOne and the Neon II successful achromatic are not yet successful stock, though. They’re disposable for pre-order with transportation expected successful Q4 2023 and April 30, respectively.

Under its e-bike selection, Micromobility.com offers 2 models from Noko, an Italian municipality e-bike marque with prices successful the mid to costly range, and the Wheels One (which to america is truly much of a seated scooter). Per the website, the Wheels One volition besides beryllium disposable for semipermanent subscription rentals for astir $130 per month, but arsenic the nexus to renting now leads to nowhere, it’s not wide if that work is presently active.

Recall that past November Helbiz acquired Wheels Labs, a micromobility institution that offers unsocial seated e-scooters for either shared usage oregon renting. Helbiz said the bargain would treble its yearly gross and assistance bring astir profitability. Before that, Helbiz acquired Italian shared moped institution MiniMoto to seizure a sliver of the shared e-moped market. As portion of its rebranding, Helbiz said it hopes to presumption itself arsenic a “micromobility consolidator successful presumption of aboriginal M&A transactions.”

The institution volition proceed to connection shared micromobility services crossed its 3 brands — Helbiz, Wheels and MiniMoto.

Reverse banal split

“The reverse banal divided is chiefly intended to bring the Company into compliance with the Nasdaq Capital Market’s minimum bid terms request and volition marque the bid terms of our Common Stock much charismatic to investors,” Salvatore Palella, CEO of present Micromobility.com, said successful a statement.

In July, Helbiz received a delisting informing due to the fact that the Nasdaq requires listed securities to support a minimum bid terms of $1 per share, and the institution had been beneath that for 30 consecutive trading days.

The reverse banal divided volition beryllium implemented with a ratio of 1-for-50 shares of communal stock, par worth $0.00001, according to the company. This means the full fig of shares of communal banal outstanding volition beryllium reduced from 278.5 cardinal to astir 5.6 million, and the full fig of people B communal banal outstanding volition beryllium reduced from astir 14 cardinal to 284,518. The changes volition beryllium successful effect erstwhile the marketplace opens Friday, the institution said.

Micromobility.com said each stockholder’s percent ownership involvement successful the institution and proportional voting powerfulness volition stay virtually unchanged, with the objection of insignificant changes and adjustments from rounding fractional shares into full shares.

For what it’s worth, Palella is the company’s largest stockholder, with astir 37.2% of voting powerfulness controlled, according to an SEC filing. In addition, the dual people operation of the company’s communal banal ore voting powerfulness with Palella, which limits an investor’s quality to power the result of important transactions similar a alteration successful control. As a effect of the mode the votes per stock are structured, Palella holds astir 60% of the voting powerfulness of the company’s superior stock, and frankincense has power implicit things similar the predetermination of directors and immoderate merger oregon consolidation.