Why Helbiz scapicolla for Wheels
The merger with Wheels could help Helbiz's stocks rise above the dollar in value so as not to end up off the Nasdaq lists.
New operation in sight for Helbiz, an Italian-American company of micromobility in sharing among the most active and forerunners of partnership (a few days ago the announcement of wanting to strengthen the collaboration with Moovit, an urban mobility app active in over 350 Italian cities), which for some time has begun to expand into other sectors by also opening an on-demand streaming channel, Helbiz Live, which holds the TV rights of Serie B for the three-year period 2021-2024
Now Helbiz has signed an agreement and a merger plan with Wheels, an electric mobility platform in the US market founded in 2018. The merger, the parties communicate, will allow Helbiz to expand in North America, obtain over 15 city licenses and, above all, enter the Los Angeles market. Upon completion of the merger, scheduled for November 2022 based on the ordinary closing arrangements, Wheels CEO Marco McCottry will lead Helbiz's micro-mobility business in North America.
"With the signing of the agreement – make it known from Wheels – Helbiz is conferred not only a proprietary and patented new generation electric vehicle, but also over five million users, an intellectual property that includes the first integrated helmet system in the sector. , exclusive contracts to serve B2B partners and universities, a team dedicated to accelerating expansion in the United States ”. Initially, Helbiz users will see a link within the app to directly access the Wheels app to rent their vehicles but, in the coming months, Helbiz will fully integrate the Wheels services within its app, thus extending the own offer of electric micro-mobility vehicles.
The deal, analysts observe, comes to curb the collapse of the company's valuation which, if it continues on the same slope, also risks being delisted by the Nasdaq. The price is now far from the 10 dollars with which the company landed on Wall Street in August 2021 and is below the 1 dollar threshold necessary to remain listed on the Nasdaq (not to be excluded, the price of ordinary shares must return at least $ 1 per share for 10 consecutive trading days before December).
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The stock ended the session after the announcement of the merger agreement down 8.10% to $ 0.285. Helbiz can always reverse split (4 shares for 1) and return to one dollar but also have the six-month extension approved by Nasdaq in an attempt to go back to 1 dollar by June.
"We intend to restructure the company that will be born after the merger to accelerate our path towards profitability by combining higher margins, deriving from the Wheels business, operational savings and operating cost reductions – said Giulio Profumo, CFO of Helbiz – We expect to achieve a positive gross profit margin within the next nine months and operating profitability within the next 24 months ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-helbiz-si-scapicolla-per-wheels/ on Thu, 27 Oct 2022 10:42:09 +0000.