Faraday Future Intelligent Electric (NASDAQ: FFIE) stock fell over 10% in early trading hours on Monday after Nasdaq announced its delisting decision. However, the company plans to appeal.
Faraday Future (FFIE) has encountered a significant challenge with its listing on The Nasdaq Stock Market LLC, as indicated in a letter received by the company dated April 24, 2024. The letter states that Faraday Future is not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii) due to its securities having a closing bid price of $0.10 or less for ten consecutive trading days. Consequently, Nasdaq staff has decided to delist Faraday Future’s securities from The Nasdaq Capital Market.
This delisting determination follows earlier notifications from Nasdaq highlighting compliance issues. On December 28, 2023, Nasdaq informed Faraday Future that the bid price of its listed securities had closed below $1.00 per share for 30 consecutive business days, violating Listing Rule 5550(a)(2). Nasdaq had granted Faraday Future 180 calendar days, until June 25, 2024, to regain compliance with this rule.
Furthermore, on April 18, 2024, Nasdaq notified Faraday Future that its failure to file its Form 10-K for the year ended December 31, 2023, meant non-compliance with Listing Rule 5250(c)(1). According to Listing Rule 5810(c)(2)(A), this deficiency serves as an additional basis for delisting.
Faraday Future to Appeal Delisting Determination
Faraday Future (NASDAQ: FFIE) intends to request a hearing to appeal the Delisting Determination by May 1, 2024, the latest permissible date. This request will stay the suspension of the company’s securities for 15 days from the date of the request, allowing the Company’s securities to remain listed on The Nasdaq Capital Market. The company also plans to seek an extended stay of the suspension pending the hearing with Nasdaq’s Hearings Panel.
However, failure to appeal the delisting determination by May 1, 2024, will result in the company’s common stock trading suspension on May 3, 2024. This would be followed by a Form 25-NSE filing with the Securities and Exchange Commission, leading to the removal of the company’s securities from listing and registration on The Nasdaq Stock Market.
The Company is exploring various options to restore compliance with the Nasdaq listing rules. It includes the timely filing of its 2023 Annual Report on Form 10-K, the prompt submission of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and the potential pursuit of a reverse stock split, subject to stockholder approval.
Faraday Future (NASDAQ: FFIE) Stock Price Action
At the time of this report, FFIE stock is trading at $0.0418, showing a 10.42% decrease from the previous trading session. It is now down 93.21% year-to-date.
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