Online Car-Sharing Company Getaround Given Six Months to Cure Its Stock Deficiency

Online car sharing company Getaround has been given a period of six months by the New York Stock Exchange (NYSE) to cure its stock price deficiency or risk being delisted.

The company announced that it received a notice from NYSE for not complying with continued listing standards because the average closing price of its common stock was less than $1.00 over a consecutive 30 trading-day period.

The car sharing company however disclosed it plan to notify the NYSE of its intent to cure the stock price deficiency and return to compliance with NYSE’s continued listing standards.

Under NYSE rules, Getaround has a period of six months from receipt of the notice to cure the stock price deficiency and regain compliance with the NYSE’s continued listing standards.

Investors King understands that the car-sharing company made its public market debut last year in December, through a merger with a special purpose acquisition company (SPAC).

This combination saw the company’s stock trade at around $10 per share and promptly lost 65% of its value. The merger had valued Getaround at about $1.2 billion which it disclosed its intention to use the funds to invest in new markets and expand its products.

Meanwhile, following Getaround delisting warning from NYSE, investors have expressed concern, noting that it is a bit too early for the company to receive such a warning. They however disclosed that the warning isn’t entirely unsurprising, looking at Getaround’s balance sheet.

They further revealed that the car-sharing company scaled somewhat aggressively over the past couple of years, claiming to have a network 20 times larger than its nearest competitor while disclosing that the scale has come at the cost of negative growth and rising losses.

In the first three quarters of 2022, Getaround revenue plummeted and its operating cost increased in the first three quarters of 2022 compared to the year prior on September 2022, the company’s operating cash burn was $63.2 million compared to $53.3 million in the same period in 2021.

Getaround is an online car rental service company that provides peer-to-peer car-sharing services powered by its technology, which allows car owners to earn an income by sharing their cars with pre-qualified drivers on the Company’s network.

It makes sharing cars and trucks through its cloud and in-car Connect technology. The Company empowers consumers to shift away from car ownership to cars from entrepreneurial hosts.

Launched in 2011, Getaround is available today in more than 1,000 cities across the United States and Europe.