FFIE: Gets delisted from Nasdaq finally?
$Faraday Future Intelligent Electric Inc.(FFIE)$
In my previous post, I had hypothesized about FFIE being shorted until it reaches zero dollars.
Looks like we might never have the opportunity to witness that.
Notification - delist.
This is because on Wed, 24 Apr 2024, Faraday Friday received a notification from Nasdaq:
- Citing that FFIE was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii).
- That is FFIE stocks had a closing price of $0.10 or less for 10 consecutive trading days.
As a result, Nasdaq has decided to delist FFIE’s securities from the Nasdaq Capital Market
Actually, this is the third time FFIE has run afoul of Nasdaq listing rules.
Notification - warning.
The first encounter happened on 28 Dec 2023.
Back then, FFIE received a similar notice from Nasdaq:
- Citing that FFIE did not comply with Listing Rule 5550(a)(2).
- That is that FFIE’s stock bid price had closed at less than $1.00 per share for at least 30 consecutive business days.
As part of standard mitigation, FFIE has been given180 calendar days (6 months), or until 25 Jun 2024, to regain compliance with this rule.
Notification - Non compliance.
The second encounter happened recently on 18 Apr 2023, a week before the delisting notification.
It was for failure to submit its Form 10-K; for the period ending 31 Dec 2023.
Form 10-K is a comprehensive report filed annually by a publicly traded company about its financial performance.
This is a mandatory US Securities and Exchange Commission (SEC) requirement.
Failure to submit Form 10-k formed the baseline for Nasdaq’s action to delist FFIE.
Now what?
FFIE has announced its intentions:
- To request for a hearing, latest by Wed, 01 May 2024 - last possible day to file for appeal.
- To fight Nasdaq’s decision to delist them by coming Wed, 01 May 2024 (the deadline).
This will allow FFIE to stay traded for 15 more days while they contest Nasdaq’s decision.
Failure to contest the decision by 01 May 2024, will result in FFIE being suspended from trading by Fri, 03 May 2024; paving the way for its eventual delisting from the Exchange .
Other remedial actions.
FFIE is also working on several planned items to avoid being delisted:
- Submit the “missing” FY 2023 financial reports.
- Change their stock structure through "reverse stock split”.
My viewpoints : (mine & mine only)
- It is quite suspicious that a listed company could “missed out” on filing its financial statements.
- The integrity of the CFO is called into question.
- Upon further digging, it was found that the actual CFO - Yun Han has stepped down from the CFO role on 11 Jul 2023; while continuing her other role as Chief Accounting Officer (CAO).
- In the interim, a Mr Jonathan Maroko has stepped in as Interim CFO.
- Allegedly, Mr Maroko is a veteran CFO, with over 17 years experiences under his belt.
- Still both outgoing and incoming CFO failed to file the mandatory financial reports.
- And FFIE’s Global CEO - Mr Chen Xuefeng did not question such blatant flout.
- Looks like a cahoot of white-collar crooks to me, ha ha ha.
- When a stock has been elevated to “meme” status, nothing the company does will change punters’ mentality - that is to short the stock for a quick & dirty profit.
- Case in point, when the now delisted $Bed Bath & Beyond(BBBY)$ announced a reverse stock split on 17 Mar 2023, stock price fell by -13%.
- Upon reverse stock split completion on 9 May 2023, BBBY stock price continued to fall until $0.07.
- Eventually it was bought by $Overstock.com, Inc.(OSTKO)$ , that decided to make use of BBBY’s brand name for its online business.
I believed the same fate will befall FFIE, it is doubtful such window dressing (reverse stock split) will help to gin up much interest.
Why would a "knight in shining armour" extend an olive branch to FFIE?
Its just business suicide, no?
- Do you think FFIE will be able to get approval from SEC to halt its delist?
- Do you think the reverse stock split will solve FFIE’s penny stock status when the fundamentals remain status quo ?
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