Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE), headquartered in California and renowned for its global shared intelligent electric mobility ecosystem, disclosed today the receipt of a letter from The Nasdaq Stock Market LLC (“Nasdaq”) dated April 24, 2024. This communication conveyed Nasdaq’s determination that Faraday Future was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii), attributable to the Company’s securities maintaining a closing bid price of $0.10 or less for ten consecutive trading days. Consequently, Nasdaq staff has opted to delist the Company’s securities from The Nasdaq Capital Market, marking the Delisting Determination.
In a prior notice dated December 28, 2023, Nasdaq had alerted Faraday Future of its securities’ bid price closure below $1.00 per share for the preceding 30 consecutive business days, thus infringing upon Listing Rule 5550(a)(2). The Company was afforded a window of 180 calendar days, until June 25, 2024, to rectify this non-compliance.
Furthermore, on April 18, 2024, Nasdaq informed the Company of its non-compliance with Listing Rule 5250(c)(1) due to the delayed filing of its Form 10-K for the year ended December 31, 2023. According to Listing Rule 5810(c)(2)(A), this shortfall has now become an additional basis for potential delisting.
Faraday Future aims to lodge an appeal against the Delisting Determination by May 1, 2024, the latest permissible date. This appeal will trigger a 15-day suspension of the Company’s securities from the date of the appeal request, maintaining their listing on The Nasdaq Capital Market during this period. Furthermore, the Company intends to seek an extended suspension stay pending the appeal hearing with Nasdaq’s Hearings Panel.
Should Faraday Future fail to initiate the appeal process by May 1, 2024, trading of its common stock will be suspended as of the opening of business on May 3, 2024. Subsequently, a Form 25-NSE will be submitted to 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 actively exploring all possible avenues to regain compliance with the aforementioned rules. This includes prompt submission of its 2023 Annual Report on Form 10-K, timely filing of its Quarterly Report on Form 10-Q for the quarter concluded on March 31, 2024, and potential consideration of stockholder approval for a reverse stock split.
