Helbiz inventory tumbles on reverse cut up, rebrand to Micromobility.com

Shared micromobility firm Helbiz stated it’s going to do a reverse inventory cut up in an try and get again into compliance with the Nasdaq, which issued a delisting discover final July as a result of Helbiz’s inventory was buying and selling too low.

Helbiz can be rebranding to Micromobility.com Inc. with a purpose to place itself as a micromobility model that provides retail, leases, shared micromobility and *checks notes* sports activities streaming providers.

The rebrand comes alongside the launch of a brand new brick-and-mortar retail enterprise, which is able to embody the establishing of bodily shops throughout the U.S., beginning with its first retailer in SoHo, New York Metropolis within the subsequent 60 days. There’s additionally an e-commerce web site obtainable immediately, that includes a small choice of e-scooters, e-bikes, helmets and water bottles.

As a result of title change, Micromobility.com’s inventory will begin buying and selling below the brand new ticker image MCOM and its warrants below MCOMW beginning Friday. Helbiz’s inventory value closed Thursday at $0.12, down 4.5%, after which tumbled as a lot as 20% in after hours buying and selling.

We have now a number of questions, and Helbiz Micromobility.com didn’t reply to TechCrunch’s requests for solutions. Prime of thoughts questions embody: How is the corporate paying for even one brick-and-mortar retailer with the meager money it had within the financial institution on the finish of 2022? When does the corporate suppose it’ll be again in compliance with the Nasdaq with reference to inventory value? Have they addressed the opposite Nasdaq delisting warning about failure to have an audit committee of a minimum of three unbiased administrators? Do I actually have to put in writing out Micromobility.com for each future article about this firm?

That query about funding a bodily retailer, and even an e-commerce retailer, is an actual one. As a reminder, Helbiz closed out the 12 months with $429,000 in money and money equivalents. The corporate’s income was $15.5 million on high of a $82 million internet loss.

Okay, Micromobility.com

It’s not clear what automobiles Helbiz will promote at its bodily shops. From a fast peruse of the brand new web site, Micromobility.com is providing up three e-scooter fashions and three e-bike fashions as a spread of costs. On the scooter facet, there’s the HelbizOne, which should be the corporate’s proprietary e-scooter designed for retail, plus a few Okai Neon IIs. The HelbizOne and the Neon II in white aren’t but in inventory, although. They’re obtainable for pre-order with supply anticipated in This autumn 2023 and April 30, respectively.

Beneath its e-bike choice, Micromobility.com affords two fashions from Noko, an Italian city e-bike model with costs within the mid to costly vary, and the Wheels One (which to us is actually extra of a seated scooter). Per the web site, the Wheels One can even be obtainable for long-term subscription leases for about $130 per 30 days, however because the hyperlink to renting now results in nowhere, it’s not clear if that service is at the moment lively.

Recall that final November Helbiz acquired Wheels Labs, a micromobility firm that provides distinctive seated e-scooters for both shared use or renting. Helbiz stated the purchase would double its annual income and assist result in profitability. Earlier than that, Helbiz acquired Italian shared moped firm MiniMoto to seize a sliver of the shared e-moped market. As a part of its rebranding, Helbiz stated it hopes to place itself as a “micromobility consolidator in view of future M&A transactions.”

The corporate will proceed to supply shared micromobility providers throughout its three manufacturers — Helbiz, Wheels and MiniMoto.

Reverse inventory cut up

“The reverse inventory cut up is primarily supposed to carry the Firm into compliance with the Nasdaq Capital Market’s minimal bid value requirement and can make the bid value of our Frequent Inventory extra enticing to buyers,” Salvatore Palella, CEO of now Micromobility.com, stated in a press release.

In July, Helbiz acquired a delisting warning as a result of the Nasdaq requires listed securities to take care of a minimal bid value of $1 per share, and the corporate had been under that for 30 consecutive buying and selling days.

The reverse inventory cut up will likely be applied with a ratio of 1-for-50 shares of widespread inventory, par worth $0.00001, in accordance with the corporate. This implies the overall variety of shares of widespread inventory excellent will likely be diminished from 278.5 million to about 5.6 million, and the overall variety of class B widespread inventory excellent will likely be diminished from about 14 million to 284,518. The modifications will likely be in impact when the market opens Friday, the corporate stated.

Micromobility.com stated every stockholder’s share possession curiosity within the firm and proportional voting energy will stay nearly unchanged, aside from minor modifications and changes from rounding fractional shares into complete shares.

For what it’s value, Palella is the corporate’s largest stockholder, with about 37.2% of voting energy managed, in accordance with an SEC submitting. As well as, the twin class construction of the corporate’s widespread inventory focus voting energy with Palella, which limits an investor’s capacity to affect the result of vital transactions like a change in management. On account of the way in which the votes per share are structured, Palella holds about 60% of the voting energy of the corporate’s capital inventory, and thus has management over issues just like the election of administrators and any merger or consolidation.