Hydrogen fuel cell truck maker Hyzon Motors, subject of a Securities and Exchange Commission investigation, missed filing its third-quarter financial report, putting its stock at greater risk of being delisted from the Nasdaq.
It is the second consecutive quarter that the spinoff of Singapore-based Horizon Fuel Cell Technologies missed the exchange’s deadline for filing its quarterly report. This time, Nasdaq issued three deadlines Hyzon must meet to continue trading.
Nasdaq issues 3 deadlines issued to Hyzon Motors
The Nasdaq told Hyzon that it has until Dec. 1 to update to its original plan to regain compliance on missing Q2 and Q3 filings; it must summarize results of an internal company investigation by Jan. 16, 2023; and it must file its delinquent 10-Q form before Feb. 13, 2023.
“The Company intends to file the delinquent Forms 10-Q as soon as practicable,” Hyzon said in an 8-K filing with the SEC on Friday.
Hyzon’s business primarily has focused on Europe and Australia despite being based in Rochester, New York. It merged with Decarbonization Plus Acquisition Corp., a special purpose acquisition company (SPAC), in July 2021.
Hyzon chased SPAC money
Hyzon was one of scores of companies, many of them pre-revenue startups, that chased billions of dollars in the now-moribund SPAC market. SPACs operated as shell companies established solely to merge with up-and-coming technology companies, offering tens of millions from blank check investors who hoped to ride the companies to great stock market returns.
But as the markets cooled, SPAC stocks generally tumbled. Several have merged with competitors. For example, lidar developers Ouster and Velodyne agreed to combine earlier this month. Other companies are trying to raise additional funds in a high-interest environment.
In the sights of a short seller
A few, like Hyzon, found themselves the target of short sellers, who bet shares would fall after revealing questionable business practices. In Hyzon’s case, the short seller Blue Orca accused Hyzon of lying about the sale of 500 fuel cell trucks to a Chinese firm that Blue Orca said was created just days before the sale was announced.
The SEC subpoenaed Hyzon about the claim in January. In August, Hyzon said it had discovered problems with revenue recognition in China and skipped filing Q2 financials. In August, the company ousted CEO Craig Knight and demoted Executive Chairman George Gu to non-executive chairman.
Hyzon continues to have a presence at industry events. It named former chief strategy officer Parker Meeks as interim CEO in August. Hyzon shares (NASDAQ: HYZN) closed Friday at $1.69, down 4.52%