Getaround appeals NYSE delisting, trades on OTC markets By Investing.com

SAN FRANCISCO – Getaround, a car-sharing company, today announced that the New York Stock Exchange (NYSE) has suspended trading of its common stock and initiated the delisting process due to the company failing to meet minimum market capitalization requirements. Despite this, Getaround’s business operations remain unchanged and the company plans to appeal the NYSE’s decision.

The NYSE requires listed companies to maintain an average global market capitalization of at least $15 million over a period of 30 consecutive trading days. Getaround failed to meet this criterion, leading to the suspension and delisting proceedings. In response, Getaround plans to begin trading on the OTC Markets Group platform under its current ticker symbol “GETR” effective today and aims to apply to trade on the OTCQX Best Market shortly.

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 requires the company to continue to disclose financial and operational information.

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

The company’s mission is to address sustainability and provide 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 from Getaround.

Separately, Getaround, a major player in the connected car-sharing market, recently raised an additional $50 million. This transaction, facilitated by the expansion of its credit line with Mudrick Capital Management, is part of the company’s strategic efforts to reorganize its business.

Earlier this year, Getaround underwent a leadership transition and operational restructuring aimed at establishing a sustainable business model. CEO Eduardo Iniguez said these changes, coupled with the new funding, demonstrate a commitment to the company’s users and the company’s evolving mobility needs.

Jason Mudrick, Chief Investment Officer of Mudrick Capital Management and a member of Getaround’s board of directors, expressed increased confidence in the company’s management and its ability to achieve its strategic goals of growth and profitability.

Information about InvestingPro

As Getaround (GETR) faces the challenge of delisting from the NYSE, current financial indicators and InvestingPro’s analysis paint a picture of the hurdles the company could face. With a market cap of just $12.19 million, Getaround falls short of the NYSE’s minimum requirement, reflecting the broader financial pressures facing the company. This is further highlighted by a significant gross profit margin of 90.58% over the trailing 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 over the same period.

According to InvestingPro’s advice, Getaround is saddled with a significant debt load and may struggle to pay the interest on its debt. Additionally, analysts do not expect the company to turn a profit this year, which could worry investors given that the company’s stock has performed poorly over the past year, with a total price return of -62.7%.

For investors interested in learning more about Getaround’s financial health and future prospects, additional InvestingPro insights are available that may provide insight into the company’s valuation, cash flow, and stock performance over various time periods. Readers can explore this information in more detail and benefit from a variety of analytical tools and data points by visiting https://www.investing.com/pro/GETR . For those interested in subscribing, use promo code PRONEWS24 to benefit from up to 10% off an annual Pro subscription and an annual or biannual Pro+ subscription, offering a comprehensive view of financial markets and investment opportunities.

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