Nikola Corporation (NKLA)

[David West]

Fortunately, no signs of dilution, no signs of a reverse split, and no signs of the company following usual courses of action are in sight.

Post #9331
11/2/23
David West

The near-future risk for this stock is dilution, which will be caused by selling more of the stock that was authorized at the Qtr 2 Earnings Call. If the dilution causes the PPS to fall below $1 for an extended period, the risk of delisting from Nasdaq will follow. To keep the PPS above $1, the usual pattern is a reverse split.

Post #9332
11/2/23
WeTheMarket

DW, you are assuming too much in my opinion.

Also per the following link "If a company closes below a $1/share bid price for 30 consecutive days, the Nasdaq sends the company a written notice. The notice states that the company is no longer in compliance with its continued listing requirements and has 180 days to regain compliance. Otherwise, the company will face delisting."

Source https://thebowserreport.com/blog/the-nasdaqs-minimum-bid-price-requirement/

Not mentioned above, is that after 180 days, the company can ask for another 180 days extension, that is usually granted. So, practically, the company have over a year before worrying about being delisted if the share price falls below $1 and does not recover above it.

https://eletric-vehicles.com/nikola/nikola-shareholders-approve-reverse-stock-split-and-all-other-proposals/