Volcon, an electric vehicle company, saw a 13% decrease in its shares, now trading at $3.50. This decline comes after the announcement that John Kim has been named the new chief executive to spearhead the restructuring efforts in preparation for the launch of Volcon's Stag electric vehicle.
Friday's trading session concluded with an 11% decrease in the stock, contributing to a staggering 99% decrease over the past year.
John Kim, who has been an independent director on Volcon's board since July 2021, has come out of retirement to take on the leadership role for the Stag's market launch. However, following his appointment as CEO, Kim no longer qualifies as an independent board member. Consequently, he is no longer eligible to serve on Volcon's audit committee, compensation committee, or nominating and governance committee. This change in board composition means that Volcon currently lacks a majority of independent board members as required by Nasdaq regulations. On Feb. 1, Volcon notified the Nasdaq Stock Market of its non-compliance.