EMBK - Embark Technology rallies after announcing strategic review

Embark Technology ( NASDAQ: EMBK ) traded higher in mid-day action on Friday after the company announced it was exploring strategic actions.

The Embark board approved a process to explore, review and evaluate a range of potential strategic alternatives. Those options include exploring alternative uses of assets to commercialize its technology, additional sources of financing, as well as potential dissolution or winding up of the company and liquidation of its assets.

The board notes that it reached a decision following an extended evaluation of alternative markets in which to commercialize its technology as well as an exploration, performed with the assistance of a potential sale.

The board also approved a reduction in EMBK's current workforce by approximately 230 employees. The decision was based on cost-reduction initiatives intended to reduce operating expenses. An estimated $7M to $11M in charges will be incurred to cover the reduction in force, primarily consisting of notice period and severance payments, employee benefits, equipment costs and related costs, and noncash expenses associated with vesting of share-based awards.

Shares of EMBK were up 5.77% at 12:38 p.m. on Friday. The EV stock is down more than 90% over the last 52 weeks.

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