ARNHEM, Netherlands - Allego N.V. (NYSE: ALLG), a key player in the European electric vehicle (EV) charging network sector, is confronting a potential delisting from the New York Stock Exchange (NYSE) due to its stock trading below the required minimum average share price.
The company disclosed that it received a notice on March 14, 2024, from the NYSE for not meeting the continued listing standard which requires a minimum average closing share price of $1.00 over a consecutive 30 trading-day period.
To address this issue and regain compliance, Allego has a six-month period during which it can rectify the share price deficiency. Compliance can be achieved if Allego's stock closes at $1.00 or higher on the last trading day of any calendar month within the cure period, and also posts an average closing share price of at least $1.00 over the preceding 30 trading-day period.
The company has informed the NYSE of its intention to remedy the situation within the allotted timeframe. Among the options being considered is a reverse share split, which would be subject to approval from both the board and shareholders.
Currently, the notice does not affect the listing of Allego's ordinary shares, provided the company continues to meet other NYSE listing requirements. Allego's business operations and SEC reporting obligations remain unaffected by this notice.
Allego, known for its extensive charging infrastructure and software solutions, operates a network of 30,000 charging points across 16 countries. The company focuses on delivering vehicle- and network-agnostic charging solutions powered by 100% renewable energy. Since its founding in 2013 and subsequent public listing in 2022, Allego has grown to employ 200 people dedicated to making EV charging widely accessible and sustainable.
This development is based on a press release statement from Allego N.V.
InvestingPro Insights
As Allego N.V. (NYSE: ALLG) faces the challenge of potential delisting from the NYSE, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Allego's market capitalization stands at $279.14 million, reflecting the size of the company in the current market. Despite a revenue growth of 23.21% over the last twelve months as of Q3 2023, Allego's operating income margin during the same period shows a significant deficit at -47.6%, indicating the company's challenges in converting sales into operating income.
InvestingPro Tips highlight that Allego is grappling with a significant debt burden and may have trouble making interest payments on its debt, which is a crucial factor for investors to consider given the company's current stock price situation. Additionally, while analysts anticipate sales growth in the current year, they do not expect the company to be profitable this year. This is further complicated by the fact that the stock has experienced high price volatility and has seen a substantial decline over the last six months, with a total return of -40.21%.
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