Jabbs can't do anything about it.
Faraday Future recently announced that it has received a letter from the NASDAQ exchange stating that it will be delisted from NASDAQ due to non-compliance with its listing rules. Faraday Future stated that it will appeal in an effort to avoid the fate of delisting.
Nasdaq issues delisting notice
According to a notice from the NASDAQ Exchange, Faraday's future does not comply with the NASDAQ listing rules, where the closing price of the company's securities for ten consecutive trading days is $0.10 or lower. Therefore, NASDAQ staff have decided to delist the company's securities from the NASDAQ capital market.
On December 28, 2023, Nasdaq notified Faraday Future that its stock had closed below $1.00 per share for 30 consecutive trading days, which no longer met the listing rules. The company should comply with the rules again before June 25, 2024.
On April 18, 2024, NASDAQ once again notified Faraday Future that it had violated the relevant provisions of NASDAQ's listing rules as Faraday Future had not yet submitted its 10-K annual reports as of December 31, 2023. Faraday is allowed to submit relevant rectification plans within 60 days in the future. Meanwhile, Faraday will be listed as a non compliant company on NASDAQ within 5 working days from April 18, 2024.
Faraday Future stated that the company plans to request a hearing before May 1, 2024 (the latest allowed date) to appeal the delisting ruling, during which time the company's securities will continue to be listed on the NASDAQ capital market.
If the company fails to appeal the delisting decision before May 1, 2024, trading will be suspended at the opening of the market on May 3, 2024, and a 25-NSE form will be submitted to the US Securities and Exchange Commission, which will cancel Faraday's future listing and registration qualification on the NASDAQ stock market.
At the close of this Monday, Faraday Future's current stock price is only $0.042, with a total market value of $1.7837 million. According to Faraday Future data, only 11 cars have been delivered in the past decade.
Former employees file lawsuits against Faraday Future and others
In addition to the failure to submit annual reports mentioned in the Nasdaq letter and the long-term stock price below $1, Faraday also faces many troubles in the future.
On April 10th, two internal whistleblowers from Faraday Future claimed that the company had lied in delivering data. Moreover, Faraday's future founder Jia Yueting has weaponized the company's human resources department in retaliation against anyone attempting to uncover the truth.
These two employees have filed lawsuits against Faraday Future, Jia Yueting, and the company's human resources director Yang Nan in the Los Angeles High Court, accusing them of illegal dismissal, breach of contract, and mental harm.
Faraday Future's official response stated that they attach great importance to the two lawsuits filed by former employees. "The company believes that there are sufficient reasons based on facts to respond to the allegations in the complaint. At the same time, the company will take all necessary measures to protect the company's reputation and all employees from various accusations and infringements, including personality attacks."
Jia Yueting denied these accusations. He replied on social media that there were numerous false statements and defamation in the lawsuit, with the aim of plotting revenge and extortion, and he will file a counterclaim against these two individuals.