Wejo, a connected vehicle data company listed on Nasdaq, has announced its intention to enter administration in the UK Court. The company is also considering filing insolvency proceedings for Wejo and its subsidiaries in jurisdictions including the US. Following the announcement of the intent, Wejo's share prices dropped 55% to USD 0.10.

Wejo is also expecting a notice from Nasdaq to delist its shares, to which the company does not plan to appeal. However, Wejo states that this will not impact its operations or business.

The company also acknowledged the need for significant additional capital to fund its operations in the next 12 months and is actively exploring various options, including the sale of equity and debt financing.

In its 2022 full-year financial results, Wejo reported revenue growth of 227% YoY to USD 8.4 million; however, adjusted EBITDA loss increased by 44% YoY to USD 97.2 million due to expansion into new markets, product development, and higher public company costs. The company has reduced its cash burn by 40% in 2022 and aims to reduce it by another 50% by end-2023 to achieve cash flow breakeven by mid-2024.

To cut operating expenses and focus on revenue growth, Wejo is also planning to reduce its workforce by approximately 16% (40 employees). 

Analyst QuickTake: Wejo, founded in 2014 and backed by General Motors (GM), listed its shares on Nasdaq in November 2021 via a merger with a special purpose acquisition company (SPAC), Virtuoso Acquisition Corp. The deal generated proceeds of USD 226 million and valued the combined entity at USD 800 million. The company entered another SPAC merger deal with TKB Critical Technologies 1 in January 2023 to raise additional funds to support its strategic goals, growth, and reach cash breakeven by mid-2025 (the deal was expected to close in Q2 2023 and generate proceeds of USD 100 million). In July 2022 , Wejo also secured a USD 15.9 million additional PIPE (private investment in public equity) investment led by Sompo Light Vortex to ease its existing debt and equity facilities and extend its cash runway under current market conditions till the end of FY2023.