Damon Motors Listed On The NASDAQ

Canadian electric motorcycle startup Damon Motors is now listed on the NASDAQ exchange, meaning anyone can buy a piece of the company now—although, for now, they still can’t buy the actual motorcycles themselves.

You can read our previous coverage of the Damon saga here, but here’s the basic info. For a while now, Damon has been trying to get themselves listed on a public stock exchange to raise more money. The company says it has $100M USD in pre-order deposits, and has spent years raising private investment, but at this point, it still has not actually sold production motorcycles to the public, despite video and images of prototype models in use.

In fact, as far as we can tell, the manufacturing capacity isn’t even there to build bikes yet. At their initial prototype bike reveal at CES in 2021, Damon said they’d build their bikes in Canada. When that didn’t work out, they said they’d build the bikes in California. At this point, it seems plans to create a factory down there haven’t quite worked out either, although Damon has at least inked some deals with important suppliers. But Damon needs more money to get production rolling. Hence, an initial public offering (IPO) this week.

Heading into their IPO, Damon said they valued their shares at $12 USD apiece:

“Based upon the merger consideration issued to holders of Damon Motors securities in the transaction and the understanding of the parties, the fully diluted pro-forma equity value of the combined company is approximately US$300 million, resulting in a per share price of approximately US$12.00.”

But at their opening, Damon started at $4, went to $4.95 a share, and is now trading well under the $2 range (see current stock prices here).

This is certainly not encouraging news for the company, but we do not expect this tale is over yet. Stay tuned for news in coming weeks on Damon’s plans, but we expect production plans are going to be scaled back if they can’t raise the money they want.