首页 News 正文

Faced with the crisis of delisting low-priced stocks, Faraday will propose a stock reduction plan in the future! Is it easy to achieve the goal of $5 per share?

守遍丝
1306 0 0

On June 24th local time, Faraday Future (& quot;FaradayFuture " Or& FF announced that its board of directors has approved a series of proposals, including the implementation of a reverse stock split (reduction) of the company's common stock, which will be submitted to shareholders for approval at the upcoming annual general meeting.
It is understood that reverse stock split refers to reducing the number of issued shares of a company to a small number of shares, while keeping the proportion of shares held by shareholders unchanged, and will not cause losses to shareholders. Usually only appears when the stock price is low. This action will raise the nominal price of stocks, but it will not affect their value.
Shrinking stocks to boost stock prices
FF stated that in order to ensure full compliance with NASDAQ requirements, a series of measures have been taken to restore compliance, including submitting the 2023 annual financial report 10-K file at the end of May, hiring a new independent auditing firm, submitting a preliminary power of attorney containing a reverse stock split proposal, and committing 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.
FF stated that 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. For the benefit of all FF shareholders, FF hopes that the company will maintain its listed status. 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.
According to the proposal, the total number of issued and authorized common shares of the existing FF shall be subject to a proportional reverse division authorization within the range of 1:2 to 1:40. The final proportion will be decided by the board of directors after shareholder approval, and the board of directors has the right to choose to abandon, delay or postpone the reverse stock split.
It is worth noting that in order to continue advancing strategic financing, including from the Middle East, there are limitations due to insufficient available authorized stocks. The FF board of directors has approved a proposal in a series of proposals that will be submitted to shareholders for approval at the upcoming annual general meeting to amend the company's articles of association and allow for an increase in the number of authorized shares to be issued.
The delisting crisis of FF
As early as December 28, 2023, NASDAQ notified FF that its stock had closed below $1.00 per share for 30 consecutive trading days, which did not comply with NASDAQ's listing rules and required it to return to compliance within 180 days (i.e. no later than June 25, 2024).
On April 18, 2024, NASDAQ notified FF that it had not submitted its 10-K annual report as of December 31, 2023 in a timely manner, which did not comply with NASDAQ's listing rules.
On April 26th, FF stated that the company received a letter from NASDAQ on April 24th stating that due to the company's stock closing price being below $0.10 for ten consecutive trading days, which does not comply with NASDAQ listing rules, NASDAQ staff gave their opinion on the company's securities exiting the NASDAQ capital market; quot;)。
Currently, FF has requested Nasdaq to extend the deadline for restoring stock price compliance until August 30, 2024, and informed the Nasdaq hearing team that the company's goal is to achieve a stock price of at least $5 per share after reverse stock split. If the stock price naturally reaches this threshold, the board of directors may choose to postpone or not implement a reverse stock split.
The reporter noticed that as of June 24th, the closing price of FF was 0.326 US dollars per share, requiring 16 shares to be combined with 1 share to exceed 5 US dollars per share.
It is worth mentioning that in mid May, FF's stock price once reached $3.9 per share, as Jia Yueting had publicly stated that he would consider co serving with FF's global CEO Matthias as the company's co CEO. In addition, he also announced, "I have made a indecisive decision that is not in line with my personal pursuit. I will start commercializing my personal IP and make some money as soon as possible. Part of it will be used to pay off debts and the other part will be used to save the company, to supplement car manufacturing. I will strive to support FF's basic operations and give investors and shareholders confidence."
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
    caffycat
    昨天 11:18
    支持
    反对
    回复
    收藏
  •   每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
    star8699
    3 天前
    支持
    反对
    回复
    收藏
  •   上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
    goodfriendboy
    3 天前
    支持
    反对
    回复
    收藏
  •   人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
    3233340
    昨天 17:06
    支持
    反对
    回复
    收藏
守遍丝 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    3