Nxu Inc. has gained approval to remain on the Nasdaq Stock Exchange after the Arizona-based company received a delisting notice in October for failure to meet trading requirements as the value of its shares drifted into penny-stock territory.
Nxu on Dec. 18 announced in a regulatory filing the Nasdaq Hearings Panel approved its request for continued listing on Nasdaq, provided the company demonstrates compliance with listing rules before April 7.
The company presented a compliance plan to the hearings panel on Dec. 14 after failing to meet requirements of a $1 minimum price per share and $2.5 million in stockholders equity, the Business Journal previously reported.
“We look forward to completing the remaining steps in our compliance plan, regaining compliance, and remaining compliant for the foreseeable future,” Mark Hanchett, CEO of Nxu, said in a statement.
Nxu inks partnership with Lynx Motors
As part of its plan to boost shareholder equity and maintain its standing as a publicly-traded company, Nxu has formed a partnership with Austin-based Lynx Motors.
Nxu signed a letter of intent last week to invest in Lynx and help scale its development of “electrified products” by leveraging Nxu’s electric vehicle charging systems.
Nxu’s investment in Lynx is structured as a share exchange in which $3 million worth of Nxu shares will be exchanged for $3 million in Lynx shares, according to a company announcement.
As part of the transaction, Nxu receives a seat on Lynx’s board. In addition, Lynx is issuing an interest-free promissory note of $250,000 to Nxu in exchange for a $250,000 bridge loan.
Nxu said Lynx is working to electrify classic, gas-powered vehicles, allowing owners to “enjoy the original character and design of a classic car with modern amenities.” Lynx has a reservation list and projects in the pipeline to generate revenue, according to Nxu.
Lynx is headed by Rod Keller, who has more than 25 years of experience with companies including Linksys, Siemens, DIRECTV and Segway.
“Our customers are customers we want to keep for life, and to do that, we need to provide them with unparalleled products and services,” Keller said in a statement. “We’re better prepared to do that when we look to the future of automotive and the technology and ecosystems we’ll need to be a part of to continue to deliver that white glove treatment.”
Despite Nxu’s written claims of Lynx's market traction, it appears that very little information is publicly available about the company, aside from a website depicting a splash graphic with the date "March 1, 2024."
Keller did not respond to a request for comment on Lynx.
Nxu to buy land for EV charging stations in California
In addition to it’s newly formed partnership with Lynx, Nxu said it’s under contract to buy three sites in California for future electric vehicle charging stations.
Nxu intends to buy a 4.2-acre site near Barstow, where I-15 and I-40 intersect. Earlier this month, Nxu said it’s buying two sites near Tehachapi and North Edwards, California to build EV charging stations.
The sites are in a designated corridor for the federal National Electric Vehicle Infrastructure Program to boost EV charging and transportation throughout the country. California is distributing $40.5 million in federal funding to build 270 electric vehicle fast chargers at 26 sites along highways.
Nxu spokeswoman Amy O’Hara said the company intends to apply for NEVI grant funds to build out its EV infrastructure in California.
Nxu previously announced Quartzsite in Arizona as its first highway charging location and anticipates breaking ground in 2024.
The company did not disclose dates for when it expects to start work on EV charging projects at other sites.
“Each property must go through a rigorous due diligence period to confirm the site's access to requisite power, proper zoning, environmental inspections, and design considerations,” O’Hara said in an email to the Business Journal. “At the appropriate time, we'll share additional details on the sites, including closing and construction timelines.”
Nxu’s stock closed at 2 cents a share on Dec. 21, down 3.4%.
