Former unicorn Tritium ordered to delist from Nasdaq as shares flounder

Once a unicorn, now a mule, Brisbane-headquartered electric vehicle fast-charger company Tritium (NASDAQ: DCFC) has been ordered to delist from the Nasdaq after failing to meet minimum price requirements as shares in the loss-making business continue to flounder.

However, at an extraordinary general meeting (EGM) on Friday shareholders voted in favour of a 200-to-one reverse-stock split that aims to hit the US$1 per share mark required by the market regulator so Tritium could remain on the road. 

Tritium, which reported inventory assets of US$140 million at the end of 30 June 2023 but is now valued at just US$9.8 million, announced the closure of its Brisbane factory late last year as part of plans to achieve profitability in 2024.

Since then shares have dropped from US22c to US6c, and are now down 99.38 per cent on all-time highs above US$10 in more positive times when the business was surrounded with optimism and US President Joe Biden sang its praises.

Today's announcement flows from a minimum bid price requirement notice in October advising that Tritium had failed to comply with a US$1 per share benchmark for 30 consecutive days, giving the company 180 calendar days to regain compliance.

This means Tritium needs to lift its shares 17-fold by a 9 April deadline, which is unlikely to occur organically.

In response, Tritium held an EGM to consolidate shares to achieve this level with 89 per cent voting in favour of the scheme that is now due to take effect on 1 April.

Prior to the meeting, the company advised shareholders that whilst Nasdaq had "determined to begin the process" to delist Tritum's common stock on the Nasdaq Global Market, its notice provided an opportunity to appeal.

"On March 22, 2024, the company intends to submit a request for a hearing before the Nasdaq Hearings Panel to appeal the delisting notice," the company stated. 

On the same day as Nasdaq called to boot Tritium off the bourse, the company entered into an amended loan note subscription agreement which makes way for a new US$11.5 million facility, backed by several international affiliates as guarantors.

The St Baker Family Trust, which owns close to a quarter of Tritium, is one of the lenders under the new Facility C via Sunset Power Pty Ltd as its trustee, alongside Cigna Health and Life Insurance Company, Barings Target Yield Infrastructure Debt Holdco 1 S.À R.L., and Martello Re Limited.

"The bridge loans are intended to strengthen the company’s liquidity and lend to the company’s ability to continue as a going concern as the company works to continue operations and serve its customers," Tritium stated in a US Securities and Exchange Commission (SEC) filing.

In other recent news from Tritium, last month the company was the top-awarded fast-charger manufacturer for the National Electric Vehicle Infrastructure (NEVI) Formula Program in the state of Tennessee, where its US factory is based with an expansion capacity to produce up to 30,000 units per year.

More than $10.5 million of the total federal award, accounting for nearly 50 per cent of the state's initial NEVI funding round, was awarded to deploy 48 Tritium fast chargers across 12 new charging locations in the state.

Tritium partners Universal EV LLC and PowerUp America were awarded funding for eight and four charging sites, respectively, with Lynkwell to provide the charging software for PowerUp America’s chargers.

"We are very proud to play a key role in the electrification of Tennessee's passenger and commercial vehicles and to contribute to the health and well-being of Tennesseans,” Tritium CEO Jane Hunter said at the time.

"This recognition underscores the deep roots Tritium is putting down in Tennessee with our plant in Lebanon, and NEVI wins like this will support local jobs and industry."

Closer to home, earlier last month RACV announced it would be replacing 24 Tritium DC chargers in Victoria, reportedly with Kempower units as reported by The Driven.