FF announces plans to regain NASDAQ listing compliance

FF announced that its board of directors has approved a series of proposals, including the implementation of a reverse split of the company’s common stock, which will be submitted to shareholders for approval at the upcoming annual general meeting.

According to the proposal, the total number of issued common shares and authorized common shares of existing companies would be reversed in the same proportion within the range of 1:2 to 1:40.

The final proportion will be decided by the board of directors after the approval of shareholders, and the board of directors has the right to abandon, postpone or postpone the reverse split of shares.

In December last year, FF received a notice of non-compliance after its share price fell below the Nasdaq’s minimum closing price for listed companies for 30 consecutive trading days.

Since then, the failure to submit 10murk documents for fiscal year 2023 on time and the share price below $0.

10 for 10 consecutive trading days led to new non-compliance notices from Nasdaq and subsequent delisting notices.

To this end, the company has submitted a hearing request to the Nasdaq hearing team to share its plan to restore compliance.

Pending the decision of the Nasdaq hearing panel, the company continues to take all supportive actions to comply with the rules and requirements of Nasdaq and the Securities and Exchange Commission (SEC).

FF has taken a series of measures to restore compliance, including submitting its annual financial report 10murk for fiscal year 2023 at the end of May, hiring a new independent audit firm, submitting a preliminary power of attorney containing the proposal for a reverse stock split, and promising to submit first quarter financial report 10Muk Q by the end of July.

In addition, the company plans to submit its second-quarter 10murQ results on time.

If the company resumes compliance with its public documents, the only Nasdaq non-compliance problem at the moment will be the company’s low share price.

For the benefit of all FF shareholders, FF wants the company to remain public.

The proposed reverse stock split aims to increase the market price of the company’s common shares in order to reduce the risk of delisting by the NASDAQ capital market.

Nasdaq has a number of criteria for continued listing, which companies must meet in order to continue to list on the exchange.

Nasdaq listing Rule 5550 (a) (2) requires companies to maintain a closing price of no less than $1 per share.

If the closing price is below $1 per share for 30 consecutive days, the company will be considered non-compliant.

In addition, if the closing price is less than $0.

10 per share for 10 consecutive days, the company will be deemed not to comply with Nasdaq listing rules 5810 (c) (3) (A) (iii).

The company has asked Nasdaq to extend the period for restoring share price compliance until August 30, 2024, and informed the Nasdaq hearing panel that our goal is to achieve a share price of at least $5 per share after the reverse split.

If the stock price naturally reaches this threshold, the board of directors may choose to postpone or not implement the reverse stock split.

FF is unable to predict the price of common stocks in the coming weeks, but sets the optional ratio of reverse split between 1:2 and 1:40 to have a sufficient margin of safety in terms of the Nasdaq minimum closing price requirements, even in extreme cases such as significant fluctuations.

The company believes that it is wise to provide a long-term margin of safety for stock prices.

The reverse stock split will not affect shareholders’ ownership or voting rights, except for the conversion of fractional shares, but will affect the number of outstanding shares and the price per share.

If the shareholders approve and the board of directors finally decides to implement the reverse stock split, the higher the stock price on the implementation day, the lower the implementation ratio.

The completion of the reverse stock split depends on the market conditions and the approval of shareholders, and can not guarantee to achieve the desired results.

If the reverse stock split is no longer in the best interests of the company or shareholders, the board of directors can choose not to carry out the reverse stock split.

The company continues to promote strategic financing, including from the Middle East, but is limited by the insufficient number of authorized shares available.

To this end, the board of directors approved a proposal in a series of motions, which will be submitted to shareholders for approval at the upcoming annual general meeting to amend the articles of association to allow an increase in the number of shares authorized to be issued.

The core purpose of the proposal is to clear the way for equity-based or equity-linked strategic financing, including in the Middle East.

Once the strategic investment is obtained, it will help to improve the production and delivery of FF 91 (Parameter | request for quotation) and provide support for the improving bridge strategy of the FF automobile industry between China and the United States.

(compiled / Automotive Home Guo Chen), return to the first electric network home page >.

Link to this article: https://evcnd.com/ff-announces-plans-to-regain-nasdaq-listing-compliance/

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