On June 25th, Faraday Future announced that the company had submitted a proposal for a reverse stock split with a ratio range of 1:2 to 1:40. But if the stock price naturally reaches a long-term compliance level, the company may choose to postpone or not implement a reverse stock split. The proposed reverse stock split aims to increase the market price of the company's common stock to mitigate the risk of delisting from the NASDAQ capital market.
Faraday Future stated that the company has taken a series of measures to restore compliance, including submitting the 2023 annual financial report 10-K file by the end of May, hiring a new independent auditing firm, submitting a preliminary power of attorney containing a reverse stock split proposal, and promising to submit the first quarter financial report 10-Q file by the end of July. In addition, the company plans to submit its second quarter 10-Q financial report on time. If the company resumes compliance in its public documents, the only current issue of non-compliance with NASDAQ will be the company's low stock price.