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In a press release on Friday, Bird, a scooter and micromobility company, noted that the New York Stock Exchange (NYSE) notified that its share price was “not in compliance” with the requirement that CLASS A Common Stock for a listed company be at least $1.00 over the course of a continuous 30-day trading period. If the corporation wants to preserve its NYSE listing, it will need to soar a little higher.
Since making its debut via a SPAC merger in November of last year, Bird’s share price has generally followed a downward trajectory. Since about mid-May, when after it released its first fiscal quarter earnings for 2022, and the closing price has consistently been less than $1 per share. In those figures, revenue, gross margins, and ride profit all decreased from one quarter to the next, however — those ride profits increased significantly year over year.
The NYSE’s non-compliance notification is the first step, giving Bird six months to become compliant. This entails having a share price over $1 on the last trading day of the same month as well as maintaining an average share price of at least $1 over the course of 30 straight trading days. In a press release, Bird said that it will be evaluating a range of options, including a reverse stock split (pending shareholder approval).
On the trading day, the share price of Bird was $0.5559.