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Faraday Future Struggles to Meet Nasdaq Requirements Faraday Future Struggles to Meet Nasdaq Requirements

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Nasdaq Warning

Faraday Future Intelligent Electric Inc (FFIE), the electric vehicle startup, received a warning from Nasdaq on December 28, 2023. The company failed to maintain the minimum share price required for listing, falling short of Nasdaq’s $1 minimum threshold for 30 consecutive trading days ending on December 27, 2023.

The company has until June 25, 2024, to regain compliance with the Minimum Bid Price Requirement, and avoid delisting. To achieve this, Faraday Future must boost its share price above $1 for at least 10 consecutive days within this period. During the compliance period, the company’s class A common stock will continue to be listed and traded on The Nasdaq Capital Market.

Financial Struggles and Governance Dispute

Despite efforts to improve the situation, including a 1-for-80 reverse stock split approved by the Board on August 22, 2023, the company’s shares have plummeted by approximately 96% since September. This steep decline is attributed to ongoing financial challenges and supply chain disruptions.

In September, Faraday Future disclosed its plans to raise up to $90 million through a stock offering. As of September 30, 2023, the company’s cash position was $8.6 million, including $1.9 million of restricted cash. Alongside financial woes, Faraday Future was reportedly embroiled in a governance dispute with FF Top Holding, one of its major shareholders.

Stock Performance

Currently, FFIE shares are trading lower by 7.33% at $0.2401.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Company

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