Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | X
The electric vehicle startup Faraday Future faces the threat of delisting from Nasdaq after receiving a notice on April 24. Nasdaq cited the company’s securities trading below $0.10 for ten consecutive days as shares closed at $0.049 per share on the day.
Faraday Future, know as FF, has been seeking stockholder approval for a reverse stock split which would further dilute while increasing the share price to a compliant amount.
This comes after Nasdaq previously warned the EV maker in late December, regarding bid price non-compliance and also earlier this month for failing to file its 2023 10-K form.
Faraday Future said it intends to appeal the delisting determination by May 1, initiating a temporary suspension of its securities for 15 days. During this time, the company’s securities will remain listed on The Nasdaq Capital Market. Furthermore, Faraday plans to seek an extended stay of the suspension pending a hearing with Nasdaq’s Hearings Panel.
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Failure to appeal by May 1, 2024, will result in the suspension of Faraday Future’s common stock trading two days later, On May 3.
To address the non-compliance issues, Faraday Future is exploring various options, including the timely filing of overdue reports such as its 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended March 31.
Recently, Faraday Future shares fell on TechCrunch’s report of misrepresented initial electric vehicle sales. The U.S.-based startup “strongly reaffirmed” that all its sales were “legitimate”.
The company unveiled earlier this month that will start delivering its FF 91 luxurious sedan in the Middle East region later this year. Faraday shared that it continues to “engage with potential partners” in the region “to explore opportunities, including strategic financing, business development, and sales and marketing”.
The company is targeting the launch of a limited-edition model, the FF 91 2.0 Futurist aiFalcon, tailored to the Middle East market with initial deliveries later this year.
Faraday’s shares reached a new all time low on Monday at $0.070 per share.
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Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
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