By Sabela Ojea
Shares of Helbiz Inc. on Thursday plunged after the intra-urban transportation company said it is issuing a 1-for-50 reverse stock split as it refocuses its business model on shared micromobility services.
Shares fell 9.3% to 11 cents in after-hours trading.
The company, which supplies and rents e-scooters, e-bikes and e-mopeds, said it is rebranding to micromobility.com Inc, which will also offer direct-to-consumer sales of vehicles and accessories in the micromobility industry.
The company plans to create a network of physical stores across the U.S. and open its first location in New York in the next two months, it said.
In conjunction with the name change, the stock will trade under the ticker symbol MCOM, Helbiz said, adding that its reverse stock split-- primarily intended to bring the company into compliance with the Nasdaq Capital Market's minimum bid price requirement, will be effective when the market opens on Friday.
Helbiz's news come two days after the company said it is shutting down operations in most of the unprofitable cities it operates as it looks for a strategic partner to manage or buy a media business to achieve profitability "as quickly as possible."
The company, which is also eliminating most positions related to its car-sharing business, didn't give an update on the number of layoffs it will announce.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
March 30, 2023 18:00 ET (22:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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