Shares of Faraday Future (NASDAQ:FFIE) stock are in the red today despite a positive update from the Nasdaq.
On May 28, Faraday announced that it had requested a hearing in front of the Nasdaq Hearings Panel in order to present its plan for continued listing. The plan included filing its delayed Form 10-Q, or quarterly report, for the quarter ended March 31 and regaining compliance with Nasdaq’s minimum bid price requirement of $1. The electric vehicle (EV) company requested a deadline of Aug. 30 to achieve the minimum bid requirement.
Now, the panel has responded, accepting FF’s request for continued listing on two conditions. First, the EV company must file its first-quarter Form 10-Q by July 31. Second, it must regain compliance with the minimum bid price requirement by Aug. 31. Regaining compliance is defined as having a closing bid price of at least $1 for at least 10 consecutive trading days.
FFIE Stock: Faraday Cleared for Conditional Continued Listing
Faraday Future also stated that it plans on filing its second-quarter 10-Q on time.
“We would like to thank the Nasdaq Hearings Panel for this decision as it is a positive step in the right direction for FF to regain full compliance,” said Faraday Future Global CEO Matthias Aydt. “We plan to continue on this trajectory of committing to completing additional requirements in the coming weeks.”
In order to regain the $1 level, FF has proposed a reverse stock split between 1-for-2 and 1-for-40 at its upcoming annual meeting of stockholders in July. A specific date for the meeting has not yet been provided.
The reverse split will more than likely be greater than 1-for-2, as the company stated that it would like to have a stock price of at least $5 post-reverse split. Based on the current price of around 50 cents, a 1-for-10 reverse split would do the trick.
Meanwhile, Faraday recently announced that it had hosted United Arab Emirates (UAE) investment firm Master Investment Group (MIG) and its CEO, Sheikh Abdullah Al Qassimi, for a strategic meeting. Not many details were provided, although there is speculation that MIG is considering an investment in the struggling EV company.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
