Helbiz stock drops in reverse split, renamed Micromobility.com

Shared micromobility company Helbiz has announced it will conduct a stock split to try to get back into compliance with Nasdaq, which issued a delisting notice last July because Helbiz shares were trading too low. .

Helbiz is also rebranding to Micromobility.com Inc. to position itself as a micromobility brand that offers retail, rental, shared micromobility and sports streaming *check ratings* services.

The rebrand comes with the launch of a new brick-and-mortar retail venture, which will include the establishment of brick-and-mortar stores across the United States, starting with its first store in SoHo, New York, within the next 60 years. days. There is also an e-commerce site available today, offering a small selection of e-scooters, e-bikes, helmets and water bottles.

Due to the name change, shares of Micromobility.com will begin trading under the new ticker symbol MCOM and its warrants under MCOMW beginning Friday. Helbiz stock price closed Thursday at $0.12, down 4.5%, then fell 20% in after-hours trading.

We have many questions and Helbiz Micromobility.com did not respond to TechCrunch’s requests for answers. The questions that come to mind are: how does the company pay for even one physical store with the little money it had in the bank at the end of 2022? When does the company think it will be back in line with the Nasdaq on the stock price? Did they respond to the other Nasdaq delisting warning about the lack of an audit committee of at least three independent directors? Do I really have to write Micromobility.com for every future article about this company?

This question about financing a physical store, and even an e-commerce store, is real. As a reminder, Helbiz closed the year with $429,000 in cash and cash equivalents. The company’s revenue was $15.5 million in addition to a net loss of $82 million.

Ok, Micromobility.com

It is unclear which vehicles Helbiz will sell in its physical stores. After a quick read of the new website, Micromobility.com has three models of e-scooters and three models of e-bikes in a range of price points. On the scooter side, there’s the HelbizOne, which must be the company’s exclusive e-scooter designed for retail, plus a few Okai Neon IIs. The HelbizOne and the Neon II in white are however not yet in stock. They are available for pre-order with expected delivery in Q4 2023 and April 30, respectively.

In its selection of electric bikes, Micromobility.com offers two models from Noko, an Italian brand of urban electric bikes with prices in the mid-to-expensive range, and the Wheels One (which for us is really more of a sit-down scooter). According to the website, the Wheels One will also be available for long-term subscription rentals for around $130 per month, but since the rental link doesn’t lead anywhere, it’s unclear if that service is currently available. asset.

Recall that last November, Helbiz acquired Wheels Labs, a micromobility company that offers unique seated e-scooters to be used for sharing or rental. Helbiz said the purchase would double its annual revenue and help profitability. Prior to this, Helbiz acquired Italian shared moped company MiniMoto to capture a share of the shared moped market. As part of its rebranding, Helbiz said it hopes to position itself as a “micromobility consolidator for future M&A transactions.”

The company will continue to offer shared micromobility services through its three brands – Helbiz, Wheels and MiniMoto.

Reverse stock split

“The reverse stock split is primarily intended to bring the company into compliance with the Nasdaq Capital Market’s minimum offer price requirement and will make the offer price for our common stock more attractive to investors,” said Salvatore Palella. , CEO of Micromobility.com. in a report.

In July, Helbiz received a delisting warning because the Nasdaq requires listed securities to maintain a minimum bid price of $1 per share, and the company was below that price for 30 consecutive trading days.

The reverse stock split will be implemented with a ratio of 1 to 50 common shares, with a par value of $0.00001, according to the company. This means that the total number of common shares outstanding will be reduced from 278.5 million to approximately 5.6 million, and the total number of Class B common shares outstanding will be reduced from approximately 14 million to 284,518. The changes will be in effect when the market opens on Friday, the company said.

Micromobility.com said that each shareholder’s percentage ownership in the company and proportional voting power will remain substantially unchanged, except for minor changes and adjustments related to the rounding of fractional shares into whole shares. .

For what it’s worth, Palella is the company’s largest shareholder, with about 37.2% of voting rights controlled, according to an SEC filing. Additionally, the company’s two-class common stock structure concentrates voting power with Palella, which limits an investor’s ability to influence the outcome of large transactions such as a change of control. Due to the way votes per share are structured, Palella owns approximately 60% of the voting rights in the company’s share capital, and therefore has control over things like the election of directors and any mergers or consolidations.