Getaround to appeal NYSE delisting, trades on OTC Markets

SAN FRANCISCO - Getaround, a car-sharing company, announced today that the New York Stock Exchange (NYSE) has suspended trading of its common stock and initiated the delisting process due to the company not meeting the minimum market capitalization requirement. Despite this, Getaround's business operations remain unaffected, and the company plans to appeal the NYSE's decision.

The NYSE requires that listed companies maintain an average global market capitalization of at least $15 million over a consecutive 30 trading days. Getaround did not meet this criterion, leading to the suspension and delisting procedure. In response, Getaround expects to commence trading on the OTC Markets Group platform under its current ticker symbol "GETR" as of today and aims to apply for trading on the OTCQX Best Market promptly.

During the appeal process, Getaround will continue to be listed on the NYSE and will maintain its status as a reporting entity under the Securities Exchange Act of 1934, which obligates the company to continue disclosing financial and operational information.

Getaround's approach to car-sharing involves a digital platform powered by its proprietary cloud and in-car technology, Getaround Connect®, enabling users to access a range of vehicles without the traditional rental car process.

The company's mission includes addressing environmental sustainability and providing economic opportunities through its peer-to-peer marketplace. Since its launch in 2011, Getaround has expanded to over 1,000 cities in 8 countries.

The information in this article is based on a press release statement from Getaround.

In other recent news, Getaround, a leading player in the connected carsharing market, has secured an additional $50 million in capital. This move, facilitated by the expansion of its debt facility with Mudrick Capital Management, is part of the company's strategic efforts to revamp its business operations.

Earlier this year, Getaround underwent a leadership transition and operational restructuring aimed at establishing a sustainable business model. The CEO, Eduardo Iniguez, stated that these changes, coupled with the new funding, show a commitment to the company's users and the evolving needs of society's mobility.

Jason Mudrick, chief investment officer of Mudrick Capital Management and a Getaround board member, expressed increased confidence in the company's direction and its ability to achieve strategic growth and profitability objectives.

InvestingPro Insights

As Getaround (GETR) faces the challenge of delisting from the NYSE, current financial metrics and analyst insights from InvestingPro paint a picture of the hurdles the company may be facing. With a market capitalization of just $12.19 million, Getaround falls short of the NYSE's minimum requirement, reflecting the broader financial pressures on the company. This is further highlighted by a significant gross profit margin of 90.58% in the last twelve months as of Q1 2024, which stands in stark contrast to the company's operational challenges, such as a substantial operating income loss of $97.72 million in the same period.

InvestingPro Tips suggest that Getaround operates with a significant debt burden and may have trouble making interest payments on its debt. Additionally, analysts do not anticipate the company will turn a profit this year, which could be worrisome for investors considering the company's stock has performed poorly over the last year, with a price total return of -62.7%.

For investors seeking a deeper dive into Getaround's financial health and future prospects, there are additional InvestingPro Tips available that could shed light on the company's valuation, cash flow, and stock performance over various time frames. Readers can explore these insights further and benefit from a variety of analytical tools and data points by visiting https://www.investing.com/pro/GETR. For those interested in a subscription, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive view of the financial markets and investment opportunities.

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