Following the basic rules of the Nasdaq exchange is vital to continuing to trade therein. In rare instances, that’s all it takes to send a stock surging, as was the case for Motorsport Games (NASDAQ:MSGM), However, Hyzon Motors (NASDAQ:HYZN), which focuses on heavy-duty vehicles, is finding out the downside of running afoul of Nasdaq’s requirements. The stock is down almost 20% at the time of writing.
Nasdaq notified Hyzon of a potential delisting, which would not only suspend the stock but any warrants connected to it starting on February 14. The reason behind such a move? Hyzon has not been filing quarterly reports on Form 10-Q for the quarters that ended June 30 and September 30.
Hyzon, for its part, is filing an appeal, which will keep its stock on the Nasdaq exchange for at least a while longer. Filing a request for a hearing automatically stops the process for 15 days from the date of the request. The hearing is then scheduled for between 30 and 45 days after the request date. However, that’s not stopping shareholders from selling rapidly; reports note that the normal trading volume for Hyzon runs about 820,000 shares. Today saw closer to 3.5 million, or over four times that figure.
The most unfortunate thing about this for Hyzon investors is that shares were actually up over the last three months of trading. The last five days show that HYZN stock was maintaining its current level, with some slight downward pressure. However, the point where the Nasdaq delisting comes into play is clearly visible. The stock recovered a bit from its lows but is still well off its highs from even Wednesday.
