Bird tanks on word that a Canadian company is saving its bacon

Bird is down but not out.

Bird Canada, a separate, private company that licenses Bird's software and name, will be merged as soon as possible with an estimated total of $32 million in new financing from Bird Canada's investors.

Bird recently exited dozens of markets and got a warning from the stock market that it was trading too low and might have to shutter some of its operations. The money may be what Bird needs to stay in the scooter game according to the CEO and president.

Bird needs to raise an additional 3% to 4% of what it has raised in the past to become self-sufficient, according to a recent interview with Torchiana.

Bird needs to be profitable eventually, but investors don't think this is a good idea. Bird's stock price dropped today. When the story was published, the stock was around $0.16 per share.

Bird was worth more than $2 billion before it closed a deal that brought it to the New York Stock Exchange, according to reports. Bird's market cap has plummeted to $48 million.

Bird Canada was founded by John Bitove. One of Bird Canada's investors is Bitove.

The deal would add more profitable operations to Bird's global platform. Bird intends for Bird Canada CEO Stewart Lyons to become the combined company's president, and FreshBooks CFO Michael Washinushi to take over for Bird CFO Ben Lu.