Why Is Helbiz (HLBZ) Stock Down Today?

  • Helbiz (HLBZ) stock is on the move following a recent filing.
  • The company is seeking approval for a reverse stock split.
  • It also announced an equity agreement to raise up to $20 million.
HLBZ Stock - Why Is Helbiz (HLBZ) Stock Down Today?

Source: shutterstock.com/Radowitz

Helbiz (NASDAQ:HLBZ) stock is moving on Monday after the mobility company revealed plans for a special shareholder meeting.

That meeting has Helbiz seeking approval from shareholders for a reverse stock split. This comes as the company tries to regain compliance with Nasdaq listing rules. HLBZ stock currently trades below the $1 minimum.

Helbiz says the reverse stock split is its last resort. The company would rather see the price of its shares increases above the $1 minimum without it. However, it’s seeking approval from shareholders just in case the reverse split is needed to remain on the Nasdaq Exchange.

Salvatore Palella, CEO of Helbiz, said the following about the reverse stock split:

“I have always stated that the reverse split would be our last option of choice. We remain confident that we will be able to bring additional value to the Company and fulfill Nasdaq requirements through our strategic growth plan.”

HLBZ Stock Sale

To go along with this news, Helbiz announced an equity sale to Yorkville Advisors Global LP. It is expected to raise up to $20 million, which will help fuel the company’s strategic growth plan.

With today’s news, shares of HLBZ stock are down about 15%. That follows a short-lived spike after the market opened.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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