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Twists and turns! Faraday received another warning of delisting in the future.

2024-07-14 Update From: AutoBeta NAV: AutoBeta > News >


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Today, Faraday issued an announcement in the future that it had received a warning from NASDAQ about delisting because its share price was less than $1. It is understood that Faraday's future share price has been below $1 between November 9 and December 27, violating Nasdaq listing rules.

According to the Nasdaq listing rules, Faraday needs to continue trading on the Nasdaq capital market within the next 180 days, that is, the closing price of the company's Class A common shares must reach or exceed $1.00 per share for at least 10 consecutive trading days before June 25, 2024. If Faraday fails to meet the minimum purchase price by June 25, 2024, Nasdaq will issue a delisting notice to it.

In fact, Faraday has received several warnings from Nasdaq about delisting since it went public. Related data show that Faraday will be listed on NASDAQ in July 2021 under the symbol FFIE, with an offering price of $13.78 and a total market capitalization of $4.535 billion after closing at $13.98 on the first day of listing.

About four months after the listing, Faraday received a warning letter from NASDAQ because he did not submit financial information in time in the future. At that time, Faraday also issued a clarification in the future, saying that this was a normal procedure. Within 60 days after receiving the NASDAQ warning letter, FF will submit a compliance plan to NASDAQ and is confident that it will return to normal status in a short period of time, as long as the company returns to normal SEC documents and submits them on time, there will be no real risk of stock delisting.

In October last year, Faraday also received a Nasdaq notification letter because its share price was less than $1 for 30 consecutive trading days. In order to meet the requirements of NASDAQ listing, Faraday will increase the net worth of stock units by reducing equity in the future. On November 3, 2022, Faraday held a future special meeting of shareholders and approved a proposal that the company's board of directors would have the right to split the shares in a reverse split in a ratio of 2-for-1 to 10-for-1. However, in January this year, Faraday received another warning from Nasdaq about delisting in the future. The reason for this receipt is that Faraday has not held an annual general meeting in the future 12 months after the end of the fiscal year on December 31, 2021. In this regard, FF officials said that they will hold the annual shareholders' meeting as soon as possible, and actively draft response documents to formulate compliance plans in accordance with the requirements of the notice and Nasdaq listing rules.

It is worth noting that Faraday's future share price has continued to fall since the second half of this year. To this end, the authorities have also made a lot of adjustments. On Aug. 17, Faraday Future announced a reverse equity split of the company's issued common shares, with a proportion between 1:2 and 1:90. It is understood that the implementation of a partnership will increase the number of authorized and unissued common shares. After the partnership, Faraday's future share price returned to more than $1, but Faraday's future share price has continued to fall since then. Faraday Future announced in September that a number of company executives had voluntarily signed salary cuts and stock purchase agreements. Officials say that after reviewing the company's share price performance, management believes that Faraday's future share price is undervalued by the market, so executives hope to sign these agreements to show their commitment and confidence in the company. "

In October, Jia Yueting, founder of FF, also spoke for his company's share price, saying: he was very worried about the serious deviation between the real value of FF and the value of the capital market, and was deeply ashamed that he did not bring due value return to all shareholders and investors. He hoped to make every effort to maximize the value of FF.

In order to raise the stock price and prevent delisting, the government announced in October that it had signed Shareholder Intelligence Services LLC, a service provider of listed companies, to obtain, summarize, track and analyze shareholder trading information, investigate potential illegal short selling and increase the company's core holdings; make every effort to introduce potential strategic investors; and carry out organizational upgrading to meet the opportunities and challenges for the company to enter a new stage of development. Continuously reduce operation and supply chain costs, achieve all strategic goals, including rapid increase of production capacity, and invite a large number of professional media to visit FF to experience products and technology in depth, so that outsiders and investors can better understand the development status and true value of FF.

In December, officials said that FF may have become a target for illegal short selling and that ShareIntel had identified a reporting imbalance in FF shares through professional analysis, which could have a significant impact on public FF holdings and average daily trading volume. These imbalances may be caused by non-compliance or illegal trading activities, indicating that some counterparties may sell large amounts of FF common shares but fail to deliver.

However, it seems that the official comments have not been recognized by the capital, and Faraday's share price continues to fall in the future. Although Faraday announced its future foray into the Middle East market in November and held the FF Middle East Strategy Conference in Abu Dhabi on November 28th, officials said that more than 300 non-binding deposit-free bookings for the limited edition of FF 91 2.0 Futurist aiFalcon had been received within 72 hours after the launch, but the news also did not cause the stock price to soar.

As of December 28, FF's latest shares were trading at 26 cents, with a market capitalization of $30 million, down more than 99% from the total market capitalization of $4.535 billion at the time of the IPO.

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