Polestar Gets Nasdaq Notice on Potential Delisting
Written by Cláudio Afonso | LinkedIn | X
Geely’s electric vehicle manufacturer Polestar revealed on Friday that it received a deficiency notice from Nasdaq for not filing its annual report for the fiscal year of 2023. Polestar shares closed on Friday 8 cents above its all-time low of $1.16 reached on April 25.
The electric vehicle manufacturer stated that it has not complied with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission (SEC).
In a recent SEC filing, the company said it is “unable” to file its 2023 Annual Report which was originally scheduled to the published on February 29 before being delayed to the last day of April.
Despite the notice, the company’s securities will continue to be listed on Nasdaq as it has 60 calendar days from the date of the notice to submit a plan of compliance to Nasdaq. If accepted, the company may be granted an additional 180 calendar days from the due date of Form 20-F, or until November 11, to regain compliance.
The EV manufacturer has obtained a waiver from its lenders under its USD 950 million three-year loan facility for the late filing of the Annual Report on Form 20-F.
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Polestar said it is committed to regaining compliance and satisfying all of Nasdaq’s listing requirements.
In a statement, the brand says it “is working to file its Annual Report on Form 20-F as soon as practicable and to report its preliminary unaudited financial and operational results for the first quarter of 2024 soon thereafter”.
Citi analyst Itay Michaeli lowered on Thursday the firm’s price target on the stock from $2.50 to $1.70 per share while maintaining a Neutral rating.
In a new research note, the firm says it will adjust its evaluation once Polestar files its annual report from 2023 as it lowers the estimates given the “softer deliveries” in the first quarter.
Citi also increased its estimates for Polestar‘s free cash flow burn while adding that the delayed annual report and the identified errors in previous annual reports caused the reduction of the price target to $1.70 per share.
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Polestar claimed in the SEC filing the existence of “certain errors” in the 2021 and 2022 annual and interim financial statements adding that it will file Form 20-F “as soon as practicable”.
Following the adjustments needed to correct both 2021 and 2022 statements, the company anticipates a decrease of less than 5% in its net loss for 2021 and an increase of less than 5% for 2022.
Polestar announced last month the arrival of the Polestar 4 SUV to the US market. The first deliveries are planned for the last quarter of the year with the model starting at $55,000 as the company faces extreme pressure from shareholders.
As online sales commence today in the U.S., production is scheduled to begin in the US during the third quarter. The brand delivered “approximately 7,200 cars” globally in the first quarter.
CEO Thomas Ingenlath had recently addressed shareholders emphasizing the company’s commitment to succeed with the latest models 3 and 4. Ingenlath added also the final prototype of the Polestar 5 will be completed this year.
Written by Cláudio Afonso | LinkedIn | X
