Electric vehicle startup Faraday Future Intelligent Electric received a notice from the Nasdaq exchange on Thursday, citing non-compliance with listing rules mandating a minimum closing share price of $1, as disclosed in a recent filing.
As of Thursday, the company’s shares closed at 26 cents, prompting the need for corrective measures to meet Nasdaq’s standards. Faraday Future has until June 25 to restore compliance by ensuring its stock price remains above the required threshold for a continuous period of at least 10 days.
In an attempt to address its listing concerns, Faraday Future previously implemented a reverse stock split in August. Despite these efforts, the company has faced significant challenges, with its shares plummeting approximately 96% since the beginning of September. Cash flow constraints and supply-chain issues have contributed to the ongoing struggles.
To bolster its current cash reserves of $8.6 million, the company announced plans in late September to raise up to $90 million through a stock offering. This financial move is seen as part of Faraday Future’s broader strategy to navigate through its current financial predicaments.
Additionally, Faraday Future found itself entangled in a governance dispute with FF Top Holding, one of its major shareholders. This dispute resulted in a reshuffling of the company’s board, adding another layer of complexity to the challenges faced by the electric vehicle startup.
As Faraday Future grapples with these multifaceted issues, the company remains focused on executing strategies to regain compliance with Nasdaq’s listing requirements and addressing its broader financial and operational concerns.
