The Nasdaq stock exchange told online used-vehicle retailer Shift Technologies Inc. it could be removed from the exchange if the company’s stock price continues to remain below $1 per share.
Shift received the delisting warning from the Nasdaq’s listing qualifications department on Oct. 4. The department informed Shift its stock price had stayed below $1 for 30 consecutive days, a violation of the exchange’s listing rules, according to a document Shift filed last week with the U.S. Securities and Exchange Commission.
Shift has 180 days from the date of the Oct. 4 notice — or until April 3, 2023 — to raise its share price. It could face the delisting process if it doesn’t, according to the filing.
Automotive News has reached out to Shift for comment.
Shift shares fell 6 percent to 60 cents in midday trading. That is down more than 95 percent from its all-time high closing price of $13.98 on Sept. 1, 2020.
The San Francisco-based company recorded a $109.2 million loss through the first half of 2022 as consumer confidence waned and used-market pressures flared up. In its second-quarter earnings statement, Shift said it would revise its business plan to focus on its West Coast presence and position itself as a retailer of budget-friendly used vehicles. That will put the company on track for long-term profitability, Shift President Jeff Clementz told Automotive News in late August.
Shift also announced in August its plan to combine with CarLotz, a used-vehicle consignment company, in a stock-for-stock merger it estimates will give the combined entity a better cash position. The two companies said they expect that transaction to close in the fourth quarter, pending shareholder and regulatory approvals.
