TapTechNews June 25 - Faraday Future (FF) announced today that its board of directors has approved a series of proposals, including the implementation of a reverse stock split of the company's common stock, which will be submitted to shareholders for approval at the upcoming annual general meeting.
The proposed reverse stock split aims to increase the market price of the company's common stock to reduce the risk of delisting from the Nasdaq Capital Market. According to the proposal, the total number of existing common stocks issued and authorized common stocks of the company will be subject to a proportional reverse split authorization within the range of 1:2 to 1:40.
Faraday Future aims for a stock price of at least $5 per share (currently about RMB 28.5) after the reverse stock split. If the stock price naturally reaches this threshold, the board of directors may choose to postpone or not implement the reverse stock split.
According to TapTechNews' previous report, in December last year, FF's stock price was lower than the minimum closing price requirement (US$1 per share) for listed companies on Nasdaq for 30 consecutive trading days, and Nasdaq issued a non-compliance notice to it; since then, FF has also failed to submit the 2023 fiscal year annual financial report 10-K file on time, and the stock price has been lower than US$0.1 for ten consecutive trading days, and was delisted from the Nasdaq Stock Exchange.
Faraday Future said that it has taken a series of measures to restore compliance, including submitting the 2023 fiscal year annual financial report 10-K file at the end of May, hiring a new independent auditing firm, submitting the preliminary proxy statement including the reverse stock split proposal, and committing to submit the first quarter financial report 10-Q file by the end of July.