A woman rides a bird electric scooter in Southern California.
birdA provider of electric scooters that customers can rent in cities said the New York Stock Exchange will suspend trading in its shares after the company failed to maintain a market capitalization of $15 million for 30 consecutive days.
The company's shares will be traded on the stock exchange from Monday, a statement.
Electric scooter and bike rentals became trendy alternatives to public transit and ride-sharing before the pandemic, when venture capitalists poured money into all kinds of growth areas, regardless of how unprofitable they were. The bird raised more than 500 million dollars and was appreciated $2.5 billion In the 2019 round led by Sequoia Capital.
The onset of Covid in 2020 brought business to a near standstill as cities went into lockdown. Growth resumed in 2021, but the bubble days are over.
Bird went public that year through a merger with a special-purpose buyout company, but the economy continued to deteriorate. Its net loss in 2022 widened to $359 million from $215 million a year earlier. Revenue for the period increased 28% to $245 million.
The stock has lost 80% of its value this year, closing at 90 cents on Friday, giving it an $11.6 million market cap. This after A 1-25 reverse split It meant the stock was back trading above $1.
earlier this week Bird has acquired scooter startup Spin for $19 million, including $10 million in cash.
“We strongly believe that BRDS's current market cap does not reflect the company's intrinsic value,” Michael Washinushi, Bird's acting CEO, was quoted as saying in a statement Friday. “And while disappointing, this change in our NYSE listing status does not change our commitment to our shareholders, our valued employees at Bird and Spin, our partners and the many global cities and institutions with which we work.”
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