(Bloomberg) -- Shares in electric car charging company Volta Inc. closed below 50 cents for the first time since the startup went public last year, as a cash crunch and the possibility of delisting weighed on the stock.
Volta, which briefly topped $13 last fall, dropped 6.4% Wednesday to close at 49.2 cents. Competitors Blink Charging Co., ChargePoint Holdings Inc., and EVgo Inc., all gained more than 5% for the day.
Volta started trading on the New York Stock Exchange in August 2021 after merging with a special purpose acquisition company, part of a wave of clean-tech startups taking that route to market. But in March, two of the San Francisco company’s top executives and founders abruptly resigned. This month, Volta reported that cash reserves had shrunk to $15.6 million. The company has fired more than half its workforce to stabilize finances.
On Friday, the company said it received a possible delisting warning from the exchange, due to its low stock price. Volta said in response that it would consider a reverse stock split, among other steps, to bring its stock price back into compliance with the NYSE’s listing rules.
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