Canadian electric motorcycle brand-in-the-making Damon has been taking a beating on the stock ticker lately, with its shares plummeting to US$0.0075 on the Nasdaq exchange at the time of writing. That puts it at risk of being removed from the stock exchange altogether – and could be a sign of the end of Damon before getting even a single electric bike off the production line.
The Vancouver-based outfit initially aimed to pack high-tech safety features into desirable electric motorcycles – and subsequently pivoted focus towards performance-oriented machines that would put out 200 hp and hit speeds of 200 mph (321 kmph), a whole lot faster than rival Zero's offerings.
Things weren't looking too bad then: what's not to love about a quick bike with tons of power, adjustable componentry for rider comfort, fast charging, and a 360º Advanced Motorcycle Warning System in a single good-looking package?
Damon also noted that it planned to drop its integrated powertrain platform into multiple models, which could make it easier to go into production.
The company had begun work on a production facility in Canada's province of British Columbia, and according to RideApart, quietly ditched that plan at some point in 2023. Meanwhile, it had gone through layoffs, and missed its production deadlines multiple times.
Come November 2024, Damon had launched an IPO and began trading its shares on the Nasdaq exchange, touting its US$100 million in reservations from some 3,000 prospective customers for its fully faired Hypersport and naked Hyperfighter models, with prices starting at $23,000 and $22,000 respectively.
The following month, Dominique Kwong, co-founder and CTO, took over as interim CEO. In an interview around then, Kwong noted the need for Damon to take a closer look at the personal mobility industry, and talked about getting the message about the Damon 2.0 brand out to the market sooner – without losing its focus on high-performance machines.
But where are the bikes? RideApart's Jonathon Klein noted in February they're likely not going to happen, as the company has been plagued by a chaotic working environment and "petulant" executives making it near impossible for the team to actually produce vehicles.
Without a production vehicle or shareholder confidence in sight, it appears Damon is cooked at this point. The firm has been granted a hearing on May 20 by Nasdaq to present a compliance plan – a strategy outlining steps it'll take to raise its share price above $1 and stay above that price, to avoid being delisted from the exchange.
That's no beuno for investors, and it's unclear whether Damon will be able to turn things around soonish. Getting an electric motorcycle brand off the ground is no doubt a major challenge, and the current state of affairs could very well mean the end for this Canadian upstart.
If you had reserved one of those 3,000 motorcycles that Damon promised to begin manufacturing next year, don't hold your breath. We've reached out to the company for comment, and will update this post when we hear back.
Sources: Visordown, Investing.com
