Nuvve Holding Corp. (NASDAQ:NVVE) saw its shares plunge 42.5% on Friday after the company revealed it had entered into a private placement securities purchase agreement alongside an equity line of credit.
The energy storage and vehicle-to-grid technology firm said the new financing arrangements are intended to shore up its balance sheet and reinforce its equity base. Nuvve is currently working against a December 31, 2025 deadline imposed by Nasdaq to regain compliance with both minimum bid price and shareholder equity listing standards.
In October, shareholders approved a reverse stock split, a move expected to help the company meet Nasdaq’s $1 minimum bid price requirement. Nuvve said that, combined with the new capital-raising initiatives, it believes it will be positioned to satisfy Nasdaq’s equity requirements as long as shareholders approve the associated transactions.
“This is a pivotal moment for Nuvve,” said Gregory Poilasne, CEO of the company. “With our shareholders having approved the reverse stock split, and, now, with the securities purchase agreement and equity line of credit signed, subject to shareholder approval, we believe we are in a stronger position to execute on our business objectives and deliver value to our shareholders, customers, and partners.”
According to Nuvve, the additional capital is expected to offer greater operational flexibility and fund near-term growth efforts. The company develops technology enabling electric vehicles to provide grid services and help optimize energy consumption.