The Nasdaq exchange has issued Lilium with a notice that the eVTOL developer is not in compliance with exchange rules concerning minimum share price. Nasdaq requires companies to have a minimum share price of US$1.00 to be listed on the exchange. Since Lilium Class A shares have traded below that price for the last 30 consecutive days, The Nasdaq has issued a notice that the company has 180 days (24 April 2024) to return to compliance. Compliance with the notice requires that the class A share price must have a closing price in excess of $1.00 for 10 consecutive trading days.
Lilium’s share price has struggled for much of this year. In the early part of the year, with shares trading significantly below the one-dollar limit, trading as low as $0.39, a de-listing notice seemed to be looming before the price rallied in June to $1.79 with news of a further investment tranche. However, the share price has suffered a consistent fall since then. That said, a number of options remain available to Lilium, including reverse stock splits and other instruments. Interestingly, a number of analysts are calling it a ‘buy’ with the expectation of trading at $3.00 or better in 12 months. However, those forecasts are doubtless vulnerable to any slips in the timeline of the flight test and certification programme. In May, we reported that the Munich-based company could be vulnerable to a takeover bid. Given the news of the notice, it seems that vulnerability has only increased.
