Why parent company of EDealer is delisting from Toronto Stock Exchange

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E Automotive Inc., the parent company of automotive retail technology provider EDealer and auction platform EBlock, plans to voluntarily delist its slumping shares from the Toronto Stock Exchange as auto tech companies work to regain their footing in the post-pandemic market.

The parent company of automotive retail technology provider EDealer and auction platform EBlock plans to voluntarily delist its slumping shares from the Toronto Stock Exchange as auto tech companies work to regain their footing in the post-pandemic market.

The move comes about a year and a half after E Automotive’s initial public offering, a period that has proven particularly challenging for technology companies globally, as the effects of the pandemic subside, and interest rates rise. Shares of the Toronto-based company had declined more than 85 per cent between their first public trade in late 2021, and the delisting announcement April 10.

As with many other auto tech companies, profitability remains a work-in-progress for E Automotive. In its most recent earnings report March 7, the company reported a loss of $63.4 million on revenues of $110.1 million in 2022. This compared to a $23.1 million loss and revenue of $80 million a year earlier.

The company said it also weighed a going-private transaction, but opted for delisting because of the shorter timeline, lower cost, and option to relist its shares at a later date.

 

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