Another struggling stock won’t live to see 2024. Micromobility.com (NASDAQ:MCOM) has been on quite the losing streak lately, shedding almost all its value in one month. But MCOM stock, despite a short-lived attempt at a rally, has plunged more than 35% today in just a few hours, and it’s not hard to see why. The electric scooter and bike company has received the notice from the Nasdaq that all companies dread. The exchange has informed Micromobility.com’s management that MCOM stock and all its warrants will be suspended from the Nasdaq as of Dec. 20. If there is a doomsday clock for penny stocks, it is ticking loudly for this company.
Smart investors ditched their MCOM shares when the company still used the name Helbiz. But for anyone still holding them, the time for action is now.
What’s Happening With MCOM Stock
As can be expected when a company receives a delisting notice, MCOM stock is deep in the red today. It isn’t showing signs of a rebound and isn’t likely to. Even if interest from retail investors picks up, meme stock momentum won’t be enough to save it. Micromobility.com is burdened by problems that it can’t seem to shake. As per a statement released by the company:
“The Delisting Letter was due to the fact that the Company’s common stock did not maintain a minimum closing bid price of $1.00 per share as required by Nasdaq Listing Rule 5550(a)(2) and because the Company failed to comply with Nasdaq’s minimum stockholders’ equity requirement for continued listing or any of the alternative requirements in Listing Rule 5550(b)(2). Accordingly, the Nasdaq Hearings Panel has determined to delist the Company’s shares and warrants from Nasdaq.”
Earlier this month, MCOM stock shot up on news that the company had successfully reduced its debt by $9.25 million. But it’s clear that even positive updates like that can’t generate any sustainable growth. The company had discussed holding a “Special Meeting” in January 2024 to discuss the possibility of a reverse stock split. However, the writing is on the wall, and it says that MCOM stock is down and out.
Even if the stock moves to trading via an over-the-counter (OTC) exchange, that will not likely help shares rise. Investors should move on from this former meme stock and focus on companies with actual growth potential.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Samuel O’Brient 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.
