Hyzon Motors at increased risk of delisting from Nasdaq

Hydrogen fuel cell truck maker Hyzon Motors, which is the subject of an investigation by the Securities and Exchange Commission, failed to file its third-quarter financial report, putting its shares at greater risk of being delisted from the Nasdaq.

It’s the second straight quarter that the spin-off of Singapore-based company Horizon Fuel Cell Technologies has missed the stock exchange’s deadline for filing its earnings report. This time, the Nasdaq issued three deadlines that Hyzon must meet in order to continue trading.

Nasdaq issues 3 deadlines for Hyzon Motors

Nasdaq told Hyzon that it has until December 1 to update its original plan to regain compliance with missing Q2 and Q3 filings; he must summarize the results of an internal investigation by January 16, 2023; and it must submit its delinquent 10-Q form before February 13, 2023.

“The company intends to file the defaulting Forms 10-Q as soon as possible,” Hyzon said in an 8-K filing with the SEC on Friday.

Hyzon’s business has been primarily focused on Europe and Australia, although it is based in Rochester, New York. It merged with Decarbonization Plus Acquisition Corp., a special purpose entity (SPAC), in July 2021.

Hyzon chased SPAC funds

Hyzon was one of dozens of companies, many of which were pre-sales startups, chasing billions of dollars in the now dying SPAC market. SPACs acted as shell companies created solely to merge with emerging technology companies, offering tens of millions of blank check investors hoping to take the companies to great stock market returns.

But as markets cooled, SPAC stocks generally fell. Some have merged with competitors. For example, lidar developers Ouster and Velodyne agreed to join forces earlier this month. Other companies are trying to raise additional funds in a high-yield environment.

Targeted by a short seller

A few, like Hyzon, have been targeted by short sellers who bet stocks will fall after uncovering questionable business practices. In the Hyzon case, short seller Blue Orca accused Hyzon of lying about the sale of 500 fuel cell trucks to a Chinese company, which Blue Orca said was formed just days before the sale was announced.

The SEC subpoenaed Hyzon in January over the allegation. In August, Hyzon said it discovered problems with revenue recognition in China and skipped the filing of second-quarter financials. In August, the company ousted CEO Craig Knight and demoted executive chairman George Gu to non-executive chairman.

Hyzon continues to be present at industry events. In August, former chief strategy officer Parker Meeks was appointed interim CEO. Hyzon shares (NASDAQ: HYZN) closed at $1.69 on Friday, down 4.52%

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