MUNICH - Electric aircraft manufacturer Lilium N.V. (NASDAQ:LILM), known for its work in Regional Air Mobility (RAM), is facing the suspension of trading for its Class A ordinary shares and warrants on the Nasdaq Global Select Market. The Nasdaq Listing Qualifications Department issued a notice to the company on October 28, 2024, following the insolvency filings by Lilium's principal operating subsidiaries, Lilium GmbH and Lilium eAircraft GmbH, in Germany.
The trading suspension is set to take effect at the opening of business on November 6, 2024, with a Form 25 Notification of Delisting to be filed with the U.S. Securities Exchange Commission (SEC) to formally remove the company's securities from Nasdaq. The decision by Nasdaq staff is based on public interest concerns stemming from the insolvency announcement. Lilium has the option to appeal this determination by November 4, 2024.
The insolvency proceedings of Lilium's subsidiaries were filed in the local court of Weilheim in Germany and include an application for self-administration under Section 270(a) of the German Insolvency Code. The move comes as a significant development for Lilium, which has been a pioneer in creating an all-electric vertical take-off and landing jet, the Lilium Jet, aimed at offering a sustainable and accessible mode of high-speed transportation.
Lilium, founded in 2015 and headquartered in Munich, Germany, employs over 1,000 people, including around 500 aerospace engineers. The company has been working towards the decarbonization of air travel and has announced sales and indications of interest across multiple countries.
This news comes as a setback for Lilium, which has made forward-looking statements about its market prospects and the trading of its shares. The company's future events are subject to various risks and uncertainties, as detailed in its SEC filings. This press release statement serves as the basis for the current information regarding Lilium's Nasdaq listing status.
In other recent news, electric aircraft manufacturer Lilium N.V. has encountered significant financial hurdles. The company's inability to secure a €100 million loan guarantee from the German government has forced it to apply for self-administration proceedings for its principal German subsidiaries. This situation has caused Cantor Fitzgerald and Canaccord Genuity to downgrade Lilium's stock.
Despite these challenges, Lilium has raised approximately $32 million from private capital and expects an additional $55 million from a strategic investor. The company reported approximately €118.2 million in cash, cash equivalents, and financial assets for the second quarter of 2024.
On the operational front, Lilium has made progress with its Lilium Jet, with customer deliveries expected to start in 2026 and the first piloted flight planned for early 2025. The company has also appointed Philippe Balducchi, current CFO of KNDS, as a non-executive member of its Board of Directors.
These are the recent developments for Lilium, which continues to navigate its financial challenges while advancing its operational goals.
InvestingPro Insights
The recent developments at Lilium N.V. (NASDAQ:LILM) are reflected in the company's financial metrics and market performance. According to InvestingPro data, Lilium's market capitalization has dwindled to just $61.83 million, highlighting the severe impact of the insolvency filings on investor confidence.
The company's financial health appears precarious, with InvestingPro Tips indicating that Lilium is "quickly burning through cash" and its "short-term obligations exceed liquid assets." This aligns with the company's decision to file for insolvency for its principal operating subsidiaries.
Lilium's stock performance has been particularly troubling. InvestingPro data shows a staggering 86.53% price decline over the past month and a 91.3% drop year-to-date. These figures underscore the magnitude of the crisis facing the company and explain the Nasdaq's decision to suspend trading.
An InvestingPro Tip notes that the "RSI suggests the stock is in oversold territory," which could be attributed to the recent negative news and investor exodus. Additionally, the tip that "analysts do not anticipate the company will be profitable this year" aligns with the reported adjusted operating income of -$352.22 million for the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Lilium, providing a deeper understanding of the company's challenges and potential. These insights could be crucial for stakeholders navigating the uncertain future of this once-promising electric aircraft manufacturer.
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