Vicinity Motor Corp. Receives Nasdaq Delisting Notice

Rhea-AI Summary

Vicinity Motor Corp (NASDAQ:VEV) has received a delisting notice from Nasdaq due to two factors: failure to maintain the minimum bid price requirement of $1 and its recent entry into receivership under the Supreme Court of British Columbia's order. The company will not appeal the decision, and trading of its common shares will be suspended on October 31, 2024. A Form 25-NSE will be filed with the SEC to remove Vicinity Motor from the Nasdaq Capital Market.

Positive

• None.

Negative

• Stock price consistently trading below $1 minimum requirement
• Company entered into receivership
• Confirmed delisting from Nasdaq effective October 31, 2024
• Company chose not to appeal the delisting decision

Insights

Financial Analyst

The Nasdaq delisting notice for Vicinity Motor Corp. represents a significant negative development that compounds the company's existing financial challenges. The dual-trigger delisting, stemming from both the sub-$1 share price and the company's entry into receivership, indicates severe financial distress. The receivership status is particularly concerning as it suggests the company has lost control of its assets to court-appointed receivers.

The imminent delisting on October 31, 2024, will likely result in reduced liquidity, access to capital markets and decreased institutional investor interest. This could significantly impair the company's ability to raise necessary funding for operations. Shareholders should be aware that trading may become more difficult and volatile once shares move to over-the-counter markets.

Legal Expert

The receivership order from the Supreme Court of British Columbia represents a critical legal development that triggered automatic delisting under multiple Nasdaq rules. This indicates the company has lost its ability to independently manage its affairs. The decision not to appeal the delisting suggests legal options and resources available to management. Shareholders should note that receivership proceedings typically result in significant restructuring or liquidation, with common shareholders often facing substantial or total losses.

VANCOUVER, BC / ACCESSWIRE / October 23, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company") today announced that it has received a letter from the Nasdaq Listing Qualifications Department notifying the Company of its failure to meet the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).

The letter stated that as of October 21, 2024, the Company's stock had not regained compliance, as its shares continued to trade below $1. Additionally, the Company received a separate delisting determination based on its recent entry into receivership pursuant to the Order of the Supreme Court of British Columbia. In light of the receivership filing, Nasdaq has determined that delisting is also warranted under Listing Rules 5101, 5110(b), and IM-5101-1.

The Company will not appeal the decision, and trading of its common shares will be suspended at the opening of business on October 31, 2024, with a Form 25-NSE filed with the Securities and Exchange Commission, removing Vicinity Motor Corp. from the Nasdaq Capital Market.

Company Contact:

Vicinity Motor Corp.
(604) 607-4000

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. In particular, and without limitation, this news release contains forward-looking statements respecting the Company's expectations about the Creditors proceeding toward receivership and the inability of the Company to continue to operate. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Vicinity's expectations include the ongoing discussions with the Creditors and impact of a receivership order on the Company if obtained; uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, production prospects at Vicinity's assembly facility in the State of Washington, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE: Vicinity Motor Corp.

View the original press release on accesswire.com

FAQ

Why is Vicinity Motor Corp (VEV) being delisted from Nasdaq?

Vicinity Motor Corp is being delisted due to failing to maintain the $1 minimum bid price requirement and entering into receivership under the British Columbia Supreme Court order.

When will Vicinity Motor Corp (VEV) be delisted from Nasdaq?

Vicinity Motor Corp's common shares will be suspended from trading on Nasdaq effective October 31, 2024.

Will Vicinity Motor Corp (VEV) appeal the Nasdaq delisting decision?

No, Vicinity Motor Corp has decided not to appeal the Nasdaq delisting decision.

What happens to Vicinity Motor Corp (VEV) shares after the Nasdaq delisting?

After October 31, 2024, Vicinity Motor Corp shares will be removed from the Nasdaq Capital Market through a Form 25-NSE filing with the SEC.