Getaround Announces NYSE’s Suspension of Trading and Start of Delisting Process
Getaround (NYSE: GETR) announced that the New York Stock Exchange (NYSE) has suspended trading of its common stock and initiated the delisting process. This decision follows NYSE's determination that Getaround failed to maintain an average global market capitalization of at least $15 million over 30 consecutive trading days as per Rule 802.01B. Getaround intends to appeal the decision and plans to resume trading on the OTC Markets Group platform with the ticker GETR starting July 10, 2024. The company is also applying to trade on the OTCQX Best Market. Despite the delisting, Getaround's business operations and focus remain unaffected. The company will stay listed on NYSE during the appeal and continue to disclose financial and operational information as required by the Securities Exchange Act of 1934.
- Getaround will continue to operate as a public company despite the delisting process.
- The company plans to appeal the NYSE's decision and resume trading on the OTC Markets Group platform by July 10, 2024.
- Getaround's business operations and focus remain unaffected by the delisting process.
- NYSE suspended trading of Getaround's common stock due to failure to maintain an average global market capitalization of at least $15 million over 30 consecutive trading days.
- NYSE initiated the delisting process for Getaround's common stock.
Insights
The NYSE’s decision to suspend and initiate the delisting process for Getaround’s common stock is significant for retail investors. The delisting follows Getaround’s failure to maintain the NYSE’s minimum market capitalization requirement of
From a financial standpoint, trading on the OTC Markets rather than the NYSE usually means reduced liquidity and less visibility, which could lead to increased volatility and greater difficulty for the company to attract institutional investors. However, Getaround plans to appeal the delisting decision and aims to get listed on the OTCQX Best Market, which is more reputable within the OTC Markets.
In the short term, investors should be cautious, as such news typically unsettles markets and can significantly affect stock prices. In the long term, sustainability depends on how effectively Getaround can address its financial shortcomings and improve its market capitalization.
Overall, stakeholders need to monitor the company's financial disclosures closely and evaluate the success of the appeal process.
For retail investors, understanding the market sentiment around Getaround is crucial. Transitioning from the NYSE to the OTC Markets is often perceived negatively by the investment community, affecting the company’s public image and investor confidence. OTC-listed companies typically have less stringent reporting requirements, which might lead to concerns about transparency and governance.
Despite these challenges, Getaround’s continued operations and plans to appeal and potentially upgrade to the OTCQX Best Market indicate proactive steps to maintain investor confidence and operational stability. The OTCQX Best Market caters to investor-friendly companies with high financial standards, which might help to partially restore credibility.
Investors should keep an eye on how Getaround communicates its business strategy and financial health throughout this period. The company’s ability to maintain transparency and meet financial targets could prove critical for sustaining investor trust and eventual recovery.
From a legal perspective, the delisting process initiated by the NYSE under Rule 802.01B for failing to meet market capitalization requirements is a serious regulatory action. However, Getaround’s intention to appeal the NYSE’s decision indicates that the company is seeking to rectify the situation and remain compliant with listing standards.
The appeal process will involve a review of the company's financial and operational status and Getaround must present substantial evidence to overturn the suspension decision. During the appeal, Getaround will remain listed on the NYSE, ensuring ongoing disclosure of essential financial and operational data as required under the Securities Exchange Act of 1934.
This continued transparency is beneficial for investors, as it maintains a level of regulatory oversight. However, the outcome of the appeal is uncertain and it may take time to resolve, which introduces an element of risk for investors.
- Getaround’s common stock is expected to continue to trade on the OTC Markets
- Getaround will continue as a public company and intends to appeal NYSE’s decision
- Delisting does not affect Getaround’s business operations or focus
Getaround (NYSE: GETR) (“Getaround” or “The Company”) today announced it received notice the New York Stock Exchange (“NYSE”) suspended trading of its common stock on the NYSE effective immediately and started the process to delist its common stock from the NYSE. The start of the delisting process follows the NYSE’s determination under Rule 802.01B of the NYSE Listed Company Manual that the Company did not meet the continued listing standard that requires listed companies to maintain an average global market capitalization of at least
The Company intends to appeal this determination and expects trading of its common stock will resume on the OTC Markets Group platform under its ticker symbol “GETR” on July 10, 2024. If the appeal is successful, NYSE will resume trading Getaround’s common stock. The Company further intends to apply for trading on the OTCQX Best Market as soon as reasonably practicable. Quotes and additional information can be found at otcmarkets.com.
The delisting process does not affect Getaround’s business operations or focus. The Company will remain listed on the NYSE throughout the appeal proceedings and will remain a reporting entity under the Securities Exchange Act of 1934, ensuring continued disclosure of financial and operational information.
About Getaround
Offering a digital experience, Getaround makes sharing cars and trucks simple through its proprietary cloud and in-car Getaround Connect® technology. The company empowers consumers to shift away from car ownership through instant and convenient access to desirable, affordable, and safe cars from entrepreneurial hosts. Getaround’s on-demand technology enables a contactless experience - no waiting in line at a car rental facility, manually completing paperwork or meeting anyone to collect or drop off car keys. Getaround’s mission is to utilize its peer-to-peer marketplace to help solve some of the most pressing challenges facing the world today, including environmental sustainability and access to economic opportunity. Launched in 2011, Getaround is available today in more than 1,000 cities across 8 countries including
Forward-Looking Statements
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, such as the Company’s intention to appeal the NYSE’s determination to suspend trading and delist its common stock. In some cases, you can identify forward-looking statements by terminology such as "expects", “intends,” “plans,” and “will,” or the negative of these terms or variations of them or similar terminology. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control, including: the effect of delisting from the NYSE, including on our relationships with third parties and employees; whether an over-the-counter trading market for our common stock will develop or persist; our ability to meet any requirements of any stock exchange for listing our securities in the future; and the other factors under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 29, 2024, and in other filings that the Company has made and may make with the SEC in the future. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our business or operations. Such statements are not intended to be a guarantee of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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Investors:
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Source: Getaround
FAQ
Why did the NYSE suspend trading of Getaround's stock?
What will happen to Getaround's stock after the NYSE suspension?
Is Getaround's business affected by the NYSE delisting?
Will Getaround appeal the NYSE's delisting decision?
When will Getaround's stock trade on the OTC Markets Group platform?
