The Nasdaq stock exchange will halt trading of financially embattled air taxi developer Lilium’s shares after 5 November, a move coming in response to insolvency filings for two of the German company’s main subsidiaries.
Lilium, which went public amid fanfare in 2021, disclosed the news in a 29 October filing with the US Securities and Exchange Commission, saying also that the Nasdaq will delist Lilium from the exchange.
Nasdaq’s “determination was based on the associated public interest concerns raised by the company’s announcement that the subsidiaries had filed for insolvency in the local court of Weilheim in Germany and applied for self-administration proceedings,” Lilium’s filing says.
The air-taxi start-up last week said in a securities filing that its two main German operating subsidiaries Lilium and Lilium eAircraft would file for insolvency amid a cash crisis. The subsidiaries “are or will become unable to pay their existing liabilities… within the next few days”, the filing said. It added that Dutch-registered parent company Lilium NV would likely “lose control of the subsidiaries”.
Lilium and Lilium eAircraft completed their insolvency filing on 28 October.
The company’s shares traded on 29 October at about 11 cents each, down from 55 cents prior to the insolvency notice. Lilium declines to comment about its insolvency plan or its pending removal from trading by Nasdaq.
The company is among a crop of start-ups developing electric vertical take-off and landing aircraft that proponents say will revolutionise regional and intra-city travel. Lilium has developed its Lilium Jet, a six-passenger air taxi powered by 30 electric motors integrated into its wings and canards.
Lilium’s financial situation became uncertain after news broke several weeks ago that the German government had denied the company a €50 million ($54 million) loan guarantee. Lilium said it needed that guarantee to secure funds required to continue its operations.
Lilium has until 4 November to appeal against the delisting decision.
