Hydrogen truck maker Hyzon Motors has been issued with a delisting notice from the Nasdaq stock exchange as its shares have traded at less than $1 for more than 30 consecutive business days, in contravention of the platform’s rules.

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The New York-state based company had previously been issued with a delisting notice in May last year for the same reason, but its shares climbed higher than $1 in July and stayed above that figure until mid-October, enabling it to regain compliance.

However, its share price fell below $1 on 7 December and has continued to fall, reaching $0.61 at the time of this article’s publication.

Hyzon’s new delisting notice, which was issued on Tuesday, comes four days after fellow US hydrogen truck maker Nikola Motors was also issued with a delisting notice by Nasdaq.

Both companies now face being kicked off the Nasdaq exchange if their share prices do not rise above the $1 threshold for ten consecutive trading sessions within 180 days, although they can petition for extensions.

In the first nine months of 2023, Hyzon reported a net loss of more than $134m, with zero revenue.

Delisting would effectively relegate the shares to penny stocks, forcing them to be bought and sold over the counter (formerly known as “pink sheets”), making them harder and less likely to be traded.

The simplest way to avoid delisting would be a reverse stock split — essentially consolidating the existing number of shares into fewer, higher-priced shares. For example, if every ten shares were consolidating into a single new share, the share price would instantly rise to $6.10.

However, artificially increasing the stock price in this way does not tend to be perceived positively by the market, as the move is often seen as a sign of a failing company.

Like Nikola, Hyzon admitted in its most recent quarterly results filing to the US Securities and Exchange Commission that its management team “has identified substantial doubt about our ability to continue as a going concern”.

In the first nine months of 2023, the company reported a net loss of more than $134m, with zero revenue.

“If we are unable to obtain sufficient additional funding or do not have access to capital, we may be required to terminate or significantly curtail our operations,” it added.

“As of the date of this report [14 November 2023], we believe that our financial resources, existing cash resources and additional sources of liquidity are not sufficient to support planned operations beyond the next 12 months. Our ability to continue as a going concern will depend on our ability to obtain additional capital.”

Hyzon had also been threatened to be ejected from the Nasdaq exchange within a month in February last year after the company admitted that it would not be able to file its financial results from the second and third quarters of 2022 on time, but it was able to stay that delisting until it eventually filed both delayed reports on 1 May 2023.

The delays were due to the internal discovery that many of the trucks it had sold has actually been inoperable or required repairs post-delivery, throwing previously reported revenues from these orders into question.

This resulted in a hefty $25m fraud case settlement with financial regulators.

Hyzon has not yet publicly commented on the new delisting notice.