Faraday Future Grants Extended Nasdaq Suspension Amid Compliance Hearing
Written by Cláudio Afonso | LinkedIn | X
The embattled electric vehicle startup Faraday Future announced on Tuesday that Nasdaq granted an extended stay of the suspension pending a hearing with Nasdaq’s Hearings Panel.
FF published today its delayed 10-K form after being notified by the Nasdaq in mid-April about the missed deadline that could result in delisting.
The company has been confronting the possibility of being delisted from Nasdaq due to ongoing non-compliance with several key listing requirements. Over the past six months, the company has received multiple notifications from Nasdaq, highlighting critical issues that threaten its status on the exchange.
On December 28, Faraday Future was notified by Nasdaq’s Listing Qualifications Staff that it was not in compliance with the Minimum Bid Price Requirement as outlined in Nasdaq Listing Rule 5550(a)(2).
This rule requires a minimum bid price of $1.00 per share for 30 consecutive trading days. Starting from November 9, 2023, FF’s Class A Common Stock consistently closed below this crucial threshold.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), FF was initially provided 180 calendar days from the notice date to regain compliance with the Minimum Bid Price Requirement. However, further complications emerged.
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On April 18, 2024, Nasdaq notified FF that it had not filed its Form 10-K, violating Listing Rule 5250(c)(1). This deficiency served as an additional basis for potential delisting under Listing Rule 5810(c)(2)(A). The missing filing underscored broader compliance issues within the company, adding to investor concerns.
On April 24, Nasdaq issued another critical letter indicating that FF was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A) for closing under $0.10 or less for ten consecutive trading days.
In an effort to address these issues, on May 1, the startup requested a hearing to appeal the Delisting Determination. This request temporarily stayed the suspension of FF’s securities for 15 days, providing a brief respite.
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Earlier this year, Faraday Future conducted a second reverse stock split in five months to regain compliance with Nasdaq listing requirements.
The company has faced repeated warnings from Nasdaq regarding bid price non-compliance and delays in filing its 2023 10-K form. The company’s securities will remain listed as it seeks an extended stay of the suspension pending a hearing with Nasdaq’s Hearings Panel.
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Written by Cláudio Afonso | LinkedIn | X
