Lilium to be delisted from New York Stock Exchange
October 29, 2024
As expected – following Lilium’s filing for insolvency and application for self-administration in Germany – the cash-strapped flying taxi startup’s shares will cease to be traded on the Nasdaq stock exchange.
“In according with Nasdaq listing rule 5101, the trading of [Lilium’s] class A ordinary shares and warrants will be suspended at the opening of business on November 6, 2024,” wrote Nasdaq to Lilium on 28 October (and disclosed in a subsequent filing). This rule, explains the stock exchange, exists to “protect investors and the public interest” – and in Lilium’s case, was activated by the company’s insolvency filing.
Last week, Lilium announced that in the absence of additional cash input “from the German government and other sources” and despite “continuous and ongoing fundraising efforts,” Lilium and wholly-owned subsidiary Lilium eAircraft would be pursuing an application for self-administration proceedings.
The news prompted share prices to fall from $0.54 (on 23 October) to $0.21 the following day. At the time of writing, they sit at an all-time low of $0.096.
After the delisting, Lilium’s shares may commence trading ‘over-the-counter,’ something Lilium’s Securities Exchange and Commission filing describes as a “significantly more limited market than Nasdaq” and one that could further depress the trading price of existing shares. “The company can provide no assurance that its ordinary shares will commence trading or continue to trade on this market,” it concluded.